Lloyd's insurer Novae eyes merger with rival Omega

LONDON: Lloyd's of London insurer Novae is examining a merger with rival Omega, in a deal which could create an enlarged group with a combined market capitalisation of some 420 million pounds ($692 million).

"In accordance with the group's publicly stated strategy, Novae routinely reviews possible transactions and confirms that it is currently undertaking due diligence in evaluating the merits of proposing a possible merger with Omega," Novae said in a statement on Tuesday.

Novae added there was no certainty it would make an offer for Omega.

In January Omega received a bid approach from privately owned rival Canopius and it then received further bid approaches from other parties, whom it declined to identify.

Novae shares closed at 369 pence on Friday, giving the group a market capitalisation of around 240 million pounds, while Omega closed at 74.13 pence to give it a stock market value of around 180 million pounds.

Copyright Reuters, 2011