Gerova Financial Group Ltd (GFC)

[CansoSpaceMan]

(Reuters) - British investment bank Seymour Pierce Ltd is in advanced talks to merge with U.S.-based reinsurer Gerova Financial Group (GFC.N), Financial Times said, citing people familiar with the talks.

The deal, which could be announced this week, would create a New York-listed investment bank and insurer worth $600 million, according to the newspaper.

The deal values Seymour Pierce at about 40 million pounds and is expected to be paid for in Gerova shares, the paper said.

A Seymour Pierce spokesman declined to comment on FT report to Reuters. Gerova Financial could not immediately be reached for comment by Reuters outside regular U.S. business hours.

The combined entity would be called Seymour Pierce Inc, which would be involved in investment banking, asset management and insurance, the FT said.

The FT also said the deal would enable Seymour Pierce to make further acquisitions of London's smaller stockbrokers.