Heath buys Lambert Fenchurch

LAMBERT FENCHURCH, the UK insurance broker, yesterday agreed to a pounds 135m takeover bid from Heath Group, its privately held rival, creating the world's sixth largest insurance broker. The deal in effect takes Lambert Fenchurch private and out of a languishing small insurance company sector whittled down in recent years by management buyouts and takeovers.

The combined group, to be known as HLF Insurance Holdings, will have combined revenues of pounds 250m with operations in 41 countries, they said. The newly created HLF is offering 145p in cash per Lambert share, 18 per cent above the company's 123p closing price on Friday.