Converium's board has unanimously welcomed a revised offer from French reinsurer SCOR, and has encouraged all shareholders to accept the offer.
Under the new terms, each Converium share may be exchanged for 0.5 new SCOR shares plus CHF 5.5 in cash and further foresees that the consideration will not be reduced by Converium's proposed gross dividend of CHF 0.2 per Converium share. Previously the offer was 0.5 new SCOR shares plus CHF 4 in cash. Based on the closing price of SCOR shares on Euronext Paris on May 9, 2007, the Offer Price values each Converium share at CHF 23.2.
Converium shareholders will also benefit from SCOR's proposed dividend for the business year 2006 of EUR 0.8 per SCOR share, as they will receive for each tendered Converium Share an equivalent amount of CHF 0.66 in cash which equals 50% of the amount of the dividend paid (in EUR) per SCOR share.
"The increase in the offer price represents a significant improvement in the consideration offered to our shareholders," said Markus Dennler, chairman of Converium's board. "The offer price recognizes our remarkable turnaround of the past two years. It further reflects the exceptional quality of our staff, longstanding client relationships and excellent growth prospects supported by a strong capital position."
