The shareholders of Bermuda-based insurer Alea Group Holdings (Bermuda) Ltd. narrowly rejected the proposed cash acquisition by FIN Acquisition Ltd. via an amalgamation scheme at an adjourned special general meeting held last Thursday.

Alea announced on Friday that 72 percent of shareholder votes cast were in favour of the amalgamation and 28 percent against. But the vote fell just short of the required 75 percent in favour.

FIN, which is the acquisition arm of private equity group Fortress Investment Group, said before the meeting that it would attempt to try and take over via an offer if its amalgamation proposals were not approved.

FIN Acquisition said it and its affiliates now own or have irrevocable undertakings to accept the offer in respect of a total of 105,620,445 Alea shares, representing approximately 61 percent of the shares in issue.

All of Alea's lines of business have been in run-off since last year, after the company's ratings fell below the crucial A- level, following its $178.9 million loss from the devastating 2005.