Hiscox Shares Surge Amid Takeover Speculation
Shares in Hiscox, a FTSE 100-listed insurer, surged to record highs on Friday following reports that Canada’s Intact Financial Corp is exploring a potential takeover offer. This development adds Hiscox to a growing list of UK companies attracting foreign acquisition interest this week.
Intact Financial Corp, a provider of property and casualty insurance, is reportedly considering acquiring Hiscox, a Lloyd’s of London insurer, according to the Financial Post. Such an acquisition would enhance Intact’s commercial lines business. The Post noted that Intact’s chief executive has been actively seeking a significant takeover target and is known to be a "fan" of Hiscox.
The news propelled Hiscox’s shares up by as much as 15.3% on Friday, reaching an all-time high of £18.90 per share. Hiscox did not immediately respond to requests for comment.
This potential deal positions Hiscox as the latest London-listed company to attract takeover interest amid a surge in foreign bids for UK businesses, driven in part by relatively lower valuations.
Other UK Companies Also Attracting Takeover Bids
On Thursday, Tate & Lyle, a London-listed ingredients business, confirmed it had received a £2.7 billion takeover offer from its US rival Ingredion. This announcement caused Tate & Lyle’s shares to rise by 45%.
If the offer is accepted, it would represent a significant geographic shift for Tate & Lyle, a company with roots tracing back to a sugar refiner operating on Liverpool docks in 1859. However, the company divested its sugar division, now known as Tate & Lyle Sugars, in 2010, while the remainder of the business has remained listed on the London Stock Exchange.
Intertek Considers Swedish Private Equity Takeover Offer
Meanwhile, the FTSE 100 company Intertek announced on Wednesday that it was "minded to recommend" a £10.6 billion takeover offer from Swedish private equity group EQT. This follows Intertek’s rejection of three previous offers from EQT and the initiation of a strategic business review last month. At that time, Intertek expressed confidence in its standalone strategy and the value-creation opportunities identified.
However, after further evaluation and discussions with investors, Intertek’s management indicated this week that it would be inclined to recommend the deal, which will subsequently be subject to a shareholder vote.
Intertek, which specializes in testing and certifying products prior to market release, has a history dating back to the 19th century, originating from the merger of three pioneering companies in the UK and the US. In 1885, it began testing and certifying grain cargoes before shipment.
The company, led by CEO André Lacroix, has faced increasing pressure from investors, including Matt Peltz, son of prominent investor Nelson Peltz. Matt Peltz has publicly urged Intertek to accept the latest takeover offer.
"We remain highly confident in Intertek’s stand-alone strategy and the value-creation opportunity outlined in the strategic review,"
Intertek stated during its strategic review last month.
