Fishers International is likely to resume talks with Hambros, the British merchant banking group, next month, on the takeover of Hambros' 54 per cent stake in Hambros Insurance Services, according to informed sources. An initial approach was turned down by Hambros. However, the rebuff is understood not to have been related to price but to uncertainty on the future role of Hambros Insurance within the Hambros group. A brief statement from Fishers said proposals on the takeover "were not accepted by Hambros" and that Fishers "is currently reviewing the position".
The initial consideration offered has not been disclosed. However, it is understood to have been well in excess of the Hambros Insurance's share price of 83p sterling when talks were started. They had risen to 95p when Fishers' announcement was made on Tuesday.
The initial consideration is understood to have valued Hambros Insurance at more than £60 million sterling (£66.2 million). This is more than three times larger than Fishers which is capitalised at around £20 million (Irish pounds). However, Fishers does not see the large size of Hambros Insurance as an obstacle, and is anxious to resume the negotiations, according to the sources.
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