Converium's board has confirmed that it has rejected an unsolicited bid from SCOR, the France-based reinsurer, for the company.
Converium's board, which is being advised by Credit Suisse and JPMorgan, considered SCOR's proposal to acquire Converium at CHF 21.- per share over the weekend. The directors were unanimous in their rejection of this proposal, which they believe fundamentally fails to recognise the value of Converium's franchise and growth prospects, and is, therefore, not in the interest of Converium, its shareholders, and its customers.
The board believes the company has the potential to achieve a sustainable return on equity of 14% by 2009. Reinsurance clients value diversification and multi-line reinsurance solutions as well as the services provided by Converium.
Converium has repeatedly emphasised and demonstrated its commitment to restoring its market position to pre-downgrade levels; and many clients have shown their support in achieving this goal. The renewals of 1 January 2007 are the most recent proof of this: Converium succeeded in growing its reinsurance book while improving technical profitability.
