Novae set to make move for Omega

INSURER Novae is putting together a bid for Omega Insurance Holdings today, having been in discussions about a deal with its weakened rival.

City A.M. understands that Novae intends to formally announce its interest in buying Omega today, but will not indicate a potential purchase price.

Omega has already announced that it has received bids from Canopius, the privately held insurer and reinsurer, and the US employment insurer Delphi.

Analysts value Omega at around £200m, or 82p per share, reflecting the downward trend in its price since early 2009, when its stock was worth 131p. Its current price brings it within range of takeover offers by rivals like Novae.