SCOR makes formal bid for the remaining 67.1% of Converium's shares, in a move that would make the French reinsurer one of the top 5 global multi-line reinsurer...
SCOR has made a formal bid for the remaining 67.1% of Converium's shares, in a move that would make the French reinsurer one of the top 5 global multi-line reinsurance companies.
SCOR is set to offer 4 Swiss francs in cash and 0.5 new SCOR shares per Converium share, equivalent to 21.1 Swiss francs per Converium share, based on the closing price on 16 February. The offer is subject to a 50.01% acceptance level on a diluted basis.
The announcement follows that made by SCOR on 19 February of its acquisition of 32.9% of Converium's share capital.
The company believes that the combination of SCOR and Converium is in the best interests of both parties, and believes that if the transaction goes ahead the combined operation will be in a position of offer its clients A+ security by 2010.
Denis Kessler, SCOR chairman and chief executive, said: “The consolidation in the insurance and reinsurance industries shows that size, diversification and expertise are critical success factors. They generate competitive advantages and lead to superior value creation. The combination of Converium and SCOR is a unique strategic opportunity and creates value for both sets of shareholders due to the enhanced earnings profile of the combined group, its lower volatility and synergies to be achieved. This is a very attractive offer. It is also a very fair offer, with all shareholders being offered equivalent terms and conditions.”
