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 companys 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 New York-based Marsh was in negotiations for a potential $1 billion acquisition of Benfield. A Marsh official said it is Marshs policy not to comment on market rumors.

However, London market officials who didnt 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 Aug. 12, these sources said.

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