Finance guru Warren Buffett is involved in a plan to merge small Lloyd’s syndicates, even though London market experts say such a consolidation is unlikely to occur in the short term.

Mr Buffett, the world’s second-richest man who owns successful insurance and reinsurance companies, is understood to be prepared to take out a 25% stake in Capital Insurance Holdings, a new company created by investment bank Rostrum.

Rostrum invests in Lloyd’s on behalf of British financial service companies, and its CEO Michael Wade is understood to want to raise more than $319 million from investors.

He would then list Capital on the London alternative investment market. He told UK media the scheme has attracted considerable attention from potential investors, and that Mr Buffett’s Berkshire Hathaway wants to take a 25% share.

Capital is set to acquire veteran Lloyd’s syndicate Euclidian, which has been trying to float for some time.