Omega rejects merger-of-equals plan by fellow Lloyd's insurer Barbican

HAMILTON, Bermuda—Omega Insurance Holdings Ltd. says a merger proposed by Barbican Group Holdings Ltd. is not an improvement over Barbican's reverse takeover deal that Omega rejected last year.

Barbican last week wrote to Omega to propose merging the two businesses, both of which have operations at Lloyd's of London.

In the letter, Barbican CEO David Reeves and Clint D. Carlson, founder of Carlson Capital L.P.—the majority shareholder in Barbican and a large shareholder in Omega—proposed a “merger of equals” between the two companies.

In its response, Omega said the latest proposal offers no improvement on Barbican's previous offer.

In December, Haverford (Bermuda) Ltd., withdrew from exclusive talks to take over Omega after the two parties could not agree on a price.

Also last year, Omega received an approach from Canopius Group Ltd. as well as another previous offer by Barbican.

In a statement Friday, Omega said it would “give due consideration to any proposals that may be in the interests of shareholders as a whole.”