LIMIT Plc Rejects New QBE Bid

Australian insurer QBE International Group Ltd.’s efforts to acquire the U.K.’s LIMIT Plc, a Lloyd’s underwriter, seem to be going nowhere.

QBE made an unsolicited bid for LIMIT at the beginning of May, after it had announced plans to merge with another Lloyd’s insurer, Wellington Underwriting. That plan has been put on hold, while LIMIT Directors, with institutional investors closely watching, decide what to do about the QBE offer.

On Friday QBE increased its original bid of 120 pence ($1.82) per share to 133 pence($2.02), valuing LIMIT at approximately £360 million ($547 million), about the figure most analysts accept as its value.

LIMIT Directors nevertheless immediately rejected the new offer, apparently awaiting an as yet undisclosed “alternative proposal.” QBE has indicated that it is reluctant to pursue its acquisition attempts without the approval of LIMIT’s Board of Directors, but intended to hold further discussions with them.