Omega Insurance confirms sale talks with bidders


Lloyd’s insurer Omega has confirmed it is in talks with a number of parties but would not confirm that US company Delphi Financial Group was among bidders.

Omega’s share price closed 18 per cent higher today and 4.3 per cent yesterday on the news that more bidders were interested in buying it after private rival Canopius made an unsolicited cash and unlisted stock offer in January.

In response to speculation that Delphi has requested to do due diligence on Omega’s books, the company confirmed that further bidders had entered takeover talks.

“The Company confirms that since its announcement of 10 January 2011 it has received further approaches that may lead to an offer for the Company,” it said.

“Discussions with the parties concerned are at an early stage and there is no certainty that an offer will be forthcoming, nor as to the terms of any such offer.”

Omega’s share price recovery comes after it fell nearly 30 per cent to 74.8p on the back of a shock full-year loss in its 2010 results on March 7.