Claims Direct cool on offer

Claims management company Claims Direct has enjoyed a loop-the-loop week following the bid last Thursday by former chairman and chief executive respectively - Tony Sullman and Colin Poole - to buy the company back from the public at ten pence per share.

At the time of the offer, the value of the shares was 15 pence, but they have since slipped to 11 pence.

A source close to the company said 'the company's not going to lie down and say thank you'.

He said the two directors had made their bid at an optimum moment, just following the release of bad year-end results, and before the Court of Appeal decision in Callery v Gray, which will determine the level of recoverability of premiums and success fess in personal injury actions: both may make the market more willing to accept the offer.A company spokesman said the 'immediate market price was not the primary concern'.

The company is likely to reject the offer, and is making no official statement until a formal offer document is received.Analysts maintain that the company will attempt to stall the offer until after Callery v Gray with the intention of using a more buoyant market to protect its position, or look for a white knight to make a more favourable offer in the meantime.A spokeman for Mr Poole and Mr Sullman said they hoped to table a formal offer this week.See Feature, page 18Jeremy Fleming