Novae has withdrawn from merger discussions with fellow Lloyd's insurer Omega.
Novae revealed on 31 May that it was conducting due diligence on Omega. However, a stock exchange announcement released today said that Novae's board has concluded that "it is unlikely a transaction can be structured at this stage which is demonstrably in Novae's shareholders' interests."
However, Novae added that it reserves the right to re-start merger discussions with Omega if new information becomes available, an offer or pre-conditional offer is announced for Omega or if Omega enters into a corporate transaction with a third party.
A number of suitors, including Lloyd's insurers Canopius and Barbican, are looking at Omega. The company confirmed in March that it had received several approaches, but a firm offer has yet to be made.
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