Bermuda-based reinsurer IPC Holdings Ltd. strongly denied widely circulated reports on Friday that it was interested in acquiring the German industrial development company Gold-Zack AG.
The reports were sent to dozens of news agencies, including Reuters, from a supposed German subsidiary of IPC, which it turns out does not exist. Shares in Gold-Zack jumped 86 percent at one point following the release of the bulletin, but fell sharply when IPC issued its denial
The company stated that it has “become aware of numerous reports in Europe to the effect that IPC Holdings, Ltd., through a German subsidiary, is seeking to acquire control of Gold-Zack AG. Such reports are false and inaccurate. IPC is in the property catastrophe reinsurance business and is not seeking control of such company. IPC does not have a German subsidiary and has no knowledge of Gold-Zack AG. IPC Holdings, Ltd.”
A report from Reuters indicated that the German financial community, not to mention the news agencies, appeared to have been the victims of an elaborate hoax, which will undoubtedly trigger an investigation by German financial authorities.
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