Benfield Group Quashes Rumors About Takeover By Marsh& McLennan

International Editor

London

Responding to recent press speculation that Marsh & McLennanCompanies was considering a bid for Benfield Group plc, Benfieldannounced last week that it is not in discussions with “any thirdparty at the current time in relation to a possible offer for thecompany.”

Benfield, a London-based reinsurance broker, said it also“wishes to confirm that no third party has undertaken due diligenceon the company in relation to a possible offer.”

“With the companys share capital being controlled by itsmanagement and employees, the future ownership of the company is,inevitably, often the subject of market rumor and speculation,” thestatement said.

Although the company does not normally comment on pressspeculation, the board decided to clarify the current situation,given the widespread press coverage the company has received.

Press reports had said that New York-based Marsh was innegotiations for a potential $1 billion acquisition of Benfield. AMarsh official said it is Marshs policy not to comment on marketrumors.

However, London market officials who didnt want to be identifiedconfirmed that the two companies had indeed been in negotiations,but that the talks had never reached the stage of conducting duediligence. Negotiations were called off on Aug. 12, these sourcessaid.

Reproduced from National Underwriter Property &Casualty/Risk & Benefits Management Edition, August 19, 2002.Copyright 2002 by The National Underwriter Company in the serialpublication. All rights reserved.Copyright in this article as anindependent work may be held by the author.