Barbican wants share exchange deal to smooth path to merger with troubled Lloyd’s rival

Lloyd's building

Barbican today revealed that it had sent out a letter outlining its plans for a merger with Omega.

The letter said that it would be a “merger of equals”.

Barbican had a failed approach in September, and its renewed interest comes just a month after Bermudian reinsurer Haverford also ended talks over buying a stake in Omega.

Small Lloyd’s of London insurers such as Omega are seen as ripe for consolidation because the soft market is hammering their share prices.

Barbican said that any deal would take place via a share exchange, which would leave Omega shareholders owning the majority of the shares in the new, combined company, with no acquisition premium paid to Barbican shareholders.

Barbican has a market capitalisation, the company’s worth on the stock market, of £120m.