Shares of Bermuda-based Omega Insurance have risen sharply since the company announced it was in takeover talks with several bidders.

On Thursday, Omega's shares, which are listed on the London Stock Exchange, rose 11 percent and they climbed another two percent on Friday. The Bermuda company is the holding company for Omega Underwriting, a Lloyd's managing agent which manages Syndicate 958. Omega has Bermudian, US and European units, as well as the Lloyd's connection, and bidders would be looking to take over the operation in its entirety.

A statement from Omega read: "The directors of Omega have noted the recent press comment on takeover discussions. The company is in discussions with a number of parties who have expressed an interest in acquiring Omega."

Omega has given marketing documents to the potential bidders. The company was keen to stress that discussions are only at very early stages, and that no formal offers have yet been made.

In 2006 Omega's Syndicate 958 made pre-tax profits of £37 million, writing a total of £250 million in gross premiums.

A Lloyd's acquisition would allow foreign firms to grow more quickly than they could on their own, while also diversifying their businesses, by using the market's array of world-wide operating licences.

Ironshore is one Bermuda insurance company that has made no secret of its desire to expand into the London market. The company recently had a takeover bid rejected by another Lloyd's insurer, Heritage Underwriting.