Benfield Denies Marsh Merger Rumor

Benfield Denies Marsh Merger Rumor

By Lisa S. Howard, London Editor

NU Online News Service, Aug. 13, 11:43 a.m. EST, London?Responding to recent press speculation that Marsh & McLennan Companies was considering a bid for Benfield Group plc, Benfield announced today that it is not in discussions with "any third party at the current time in relation to a possible offer for the company."

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

"With the company's share capital being controlled by its management and employees, the future ownership of the company is, inevitably, often the subject of market rumor and speculation," the statement said.

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

Press reports had said that the New York-based Marsh was in negotiations for a potential $1 billion acquisition of Benfield. A Marsh official said it is Marsh's policy not to comment on market rumors.

London market officials who didn't want to be identified, confirmed that the two companies had indeed been in negotiations, but that the talks had never reached the stage of conducting due diligence. Negotiations were called off on Monday, Aug. 12, these sources said.