Aon makes $1.6 bln offer for Benfield

Aon Corp, the world's largest insurance broker, has made a recommended cash offer for Benfield valuing the UK-listed broker at 844 mln pounds ($1.6 bln).
The two sides said on Friday that the acquisition price of 350 pence per share in the reinsurance broker represents a premium of over 29% to the closing price on Thursday.
Shares in Benfield, whose specialty areas range from arranging cover for earthquakes and hurricanes to kidnap and ransom, were up nearly 30% in early trade on Friday, changing hands at 352.3p at 0828 GMT.
Aon said the deal, agreed unanimously by both boards, would lead to Benfield being integrated into Aon's existing reinsurance operations, Aon Re Global.
The two sides expect the deal to add to Aon's presence in developing market in Asia and Latin America, its analytical capability, and boosts Aon's standing in the U.S. Florida and South East property-catastrophe markets.
The deal is expected to generate 65 mln pounds in savings in 2011, largely from shared administration.
Aon said it would fund the deal through cash on hand and expects it to close by the end of the year.