Omega Rejects Barbican Move to Create ‘Merger of Equals’

Omega Insurance Holdings Ltd. has rejected a merger approach from fellow Lloyd's underwriter Barbican Group Holdings Ltd., declaring it contained "no improvement on [an] earlier proposal."

Omega said in a statement it had received the latest approach on Jan. 19, 2012 from Barbican and Carlson Capital LP, which Omega described as a "substantial shareholder in Barbican."

The earlier offer, Omega said, was in the form of a "reverse takeover [with] a partial cash alternative." The latest offer did not go beyond this, Omega said.

Barbican had said in a statement its latest proposal was designed to create a "merger of equals," while the reducing costs and positioning the enlarged organization to meet the demands of Solvency II in the European Union (Best's News Service, Jan. 20, 2012).

Omega also said it had rejected as a "conflict of interest" an attempt by Carlson to name two members of Omega's board of directors.

Efforts to obtain comment from Barbican and Omega were unsuccessful.

Lloyd’s has a current Best’s Financial Strength Rating of A (Excellent).

(By Robert O'Connor, London editor: Robert.OConnor@ambest.com)