Omega: takeover timetable still on track

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Omega Insurance insists the time frame for its takeover by Canopius Group will not be affected by a lawsuit filed in the Bermuda Supreme Court.

In April, the board of Bermuda-based Omega Insurance Holdings Ltd agreed to a £164 million ($265 million) takeover offer from UK insurer Canopius.

Now, John Robinson, a shareholder and one of the founders of Omega, has launched a legal battle against the company to determine a “fair value” for his approximate 7 percent stake in Omega.

Mr Robinson is unhappy with the 67p ($1.04) a share that Canopius offered and the Omega board approved, particularly in light of the 83p offer from the same company and other offers he deemed better.

In a statement, Mr Robinson demanded “an assessment of the developments said to have impacted negatively upon shareholder value following a number of earlier and more advantageous sale opportunities that were not pursued by the board or otherwise did not come to fruition, including the prospect of a sale of the company to the same purchaser at a higher price per share only eight months earlier.”

Omega says Robinson is the sole claimant and that the proceedings relate only to the value of his own shares. The company says the takeover was approved by holders of 90.3 percent of Omega’s common shares.

Omega says the board stands by all of its previous statements in support of the acquisition and will defend it position vigorously.

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