GOSHAWK ENDS TAKEOVER TALKS WITH PRIVATE EQUITY GROUP

Bermuda-based reinsurer Goshawk has pulled out of takeover talks with Nikko Principal Investments (NPI), the UK-based private equity arm of Japanese financial group Nikko Cordial Corp, because it felt that NPI had taken too long to come up with a definite offer, reports the Financial Times . The companies have been in talks for six weeks, but Goshawk made the announcement only shortly after NPI said that it was considering a cash offer subject to due diligence and agreement by the Goshawk board. However, Goshawk is apparently willing to re-enter negotiations, while NPI in turn does not appear to have been unduly discouraged by the break-off in talks. Shares in Goshawk ended 3% higher on the day at 46p, having peaked at 49p in intra-day trading. Its current net asset value is 56p per share, but investors retain concerns at further negative reserve developments. Goshawk has also yet to give guidance on the impact of the recent hurricanes.