Omega shares rise 18% on takeover bid – The Royal Gazette | Bermuda News, Business, Sports, Events, & Community

Log In

Reset Password

Omega shares rise 18% on takeover bid

Shares of Bermuda-based Omega Insurance shot up 18 percent on Friday, as the insurer confirmed that more than one company has expressed interest in taking it over.

Omega received a bid from privately-owned rival Canopius in January and on Friday the UK press speculated that US-based Delphi Financial Services had made a formal approach.

Late this afternoon, Omega released a statement to confirm that it had received approaches from parties that it did not name.

“The directors will review these approaches in the context of the best interests of the business, the shareholders and staff,” the Omega statement read.

“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. A further announcement will be made when appropriate.”

Earlier this month, Omega announced a wider-than-expected full-year loss of $42.8 million, as a string of catastrophe loss events took their toll.

The company wrote gross premiums of $356.1 million last year and the surge in its stock price on Saturday boosted its market capitalisation to around £224 million ($363 million).

Omega's shares climbed 14p to close at 92p in London Stock Exchange trading on Friday.

The company went through a year of upheaval last year after it ousted directors including chairman Walter Fiederowicz in May at the request of its biggest shareholder, Invesco Asset Management Ltd.

You must be Registered or to post comment or to vote.

Published March 21, 2011 at 10:12 am (Updated March 21, 2011 at 10:11 am)

Omega shares rise 18% on takeover bid

What you
Need to
1. For a smooth experience with our commenting system we recommend that you use Internet Explorer 10 or higher, Firefox or Chrome Browsers. Additionally please clear both your browser's cache and cookies - How do I clear my cache and cookies?
2. Please respect the use of this community forum and its users.
3. Any poster that insults, threatens or verbally abuses another member, uses defamatory language, or deliberately disrupts discussions will be banned.
4. Users who violate the Terms of Service or any commenting rules will be banned.
5. Please stay on topic. "Trolling" to incite emotional responses and disrupt conversations will be deleted.
6. To understand further what is and isn't allowed and the actions we may take, please read our Terms of Service
7. To report breaches of the Terms of Service use the flag icon