Global banker Goldman Sachs is reportedly positioning itself for a takeover of reinsurer Benfield.

UK media reports say Goldman Sachs, one of the world's largest securities firms, has made an offer of £700 million ($1.6 billion) for the global reinsurer, or 330-350p a share.

The offer could prompt counter-bids from Aon and Marsh, which have both been linked to Benfield takeover rumours in the past.

But Goldman's deal has reportedly already struck trouble, as Benfield directors are less than impressed with the small premium offered on its stock. Funding the acquisition could prove difficult in the current financial climate emanating from sub-prime mortgage closures in the US, with nervous lenders tightening lines of credit.

Benfield, which was listed on the London Stock Exchange in 2003, was created in 1973 as a Lloyd's of London broker then became the Benfield Group in 1988.