Novae makes Chaucer merger offer

Lloyd's insurer Novae has approached rival insurer Chaucer regarding an all-share merger of the two companies.

Novae told the London Stock Exchange: "Novae Group confirms that it has made an approach to the chairman of Chaucer Holdings with a view to starting discussions regarding a possible all-share merger of the two companies. A further announcement will be made when appropriate."

Earlier, Chaucer said in a statement to the Stock Exchange: "Following the announcement by Chaucer Holdings PLC on 23 January 2009 that it was exploring options for raising capital, the company received an un-solicited indicative proposal from a third party regarding a potential merger offer for the Company on an all-share, nil premium basis.

"Whilst the board of Chaucer intends to explore whether the indicative proposal is likely to result in an offer for the company which the board believes to be in the interests of shareholders, the indicative proposal is subject to a number of conditions, and there can be no certainty that the approach will result in an offer being made for the company."

The statement added: "In light of this uncertainty, the Board continues to explore capital raising options as stated in its previous announcement of 23 January 2009."