WILLIS FABER BIDS FOR STEWART WRIGHTSON
Willis Faber Plc <WIFL.L> will make an
agreed 302.6 mln stg offer for fellow insurance broker <Stewart
Wrightson Plc>, a joint statement said.
    The offer would be on the basis of three Willis shares for
every two in Stewart, valuing each Stewart share at about
655.5p.
    Willis already owns 2.05 mln shares, or 4.62 pct, and has
received acceptances from Stewart's directors for a further
247,469 shares.
    Full acceptance of the offer would involve the issue of
66.2 mln new Willis shares, or 28.2 pct of the enlarged total.
    The companies said the proposed merger would bring together
businesses that were largely complementary. Both believed the
combination would permit more effective competition throughout
the world and enahnce the service provided to clients.
    Following the merger, the two companies saw significant
opportunities for growth in brokerage income and considerable
scope for improved operating efficiency.
    Willis shares were suspended on Friday at 437p. When
trading restarted they dropped sharply to 393p.
    Stewart Wrightson shares rose to 576p at 0835 gmt from a
suspension price of 499p.
 REUTER
