Home / Business and Economy / Zurich's Silent Beazley Bid: A £7.7bn Secret?
Zurich's Silent Beazley Bid: A £7.7bn Secret?
20 Jan
Summary
- Zurich Insurance offered £7.7bn for Beazley but kept it secret.
- The offer remained undisclosed for nearly two weeks.
- No unusual trading activity preceded the announcement.
Zurich Insurance made a £7.7 billion offer to acquire Beazley, maintaining secrecy for nearly two weeks. This significant bid went unnoticed in trading volumes and option markets, an unusual occurrence given regulatory findings that a third of UK bids have suspicious pre-announcement dealings.
Analysts note that Beazley's share price and trading volumes remained unremarkable prior to Zurich's public announcement. The subdued market activity, coupled with a lack of press speculation, suggests a tight lid was kept on information, possibly due to the diligence of financial advisors involved in the deal.
While the offer's premium is debated, with some viewing it as generous and others as insufficient given Beazley's strong performance, the all-cash nature and Zurich's capital strength may deter potential counter-bidders. This prolonged period of undisclosed negotiations raises questions about market efficiency and the state of London's financial landscape.
