Axis Capital sweetens bid for Novae

Axis Capital has sweetened its takeover offer for Lloyd's of London insurer Novae to £477.6m from the £467.6m agreed last month.

Novae agreed back in July to a price of 700p per share, but the new price of 715p represents a premium of around 23% to Novae's closing price of 581p on 4 July, which was the day before the announcement of the deal.

The Bermuda-based specialty insurer and reinsurer said the latest bid was final and will not be increased unless there is an announcement of another offer by a third party. Novae's board has unanimously accepted the new offer, which it deems to be "fair and reasonable".

"The increased offer represents a substantial premium to the undisturbed share price of Novae. By offering Novae shareholders an improved cash offer, Axis aims to bring certainty to the transaction."

Shore Capital said: "Apart from a reference to its aim of bringing 'certainty to the transaction' there are no other reasons offered by Axis for this increase.

"Although this move is likely to lead to speculation that a counter-bid may be possible, we remain of the view that this is unlikely. We still believe shareholders should accept the offer and move on."

At 1550 BST, Novae shares were up 1.9% to 710.50p.