The Bermuda-based Max Capital Group acknowledged that it has received a copy of Validus Holdings, Ltd.’s unsolicited, stock-for-stock, proposal for IPC Holdings, Ltd. The offer somewhat complicates the planned amalgamation of Max and IPC.
Standard & Poor’s Ratings Services issued a comment (see following article), indicating that, although it isn’t “taking any rating action on any of these companies as a result of this announcement, we will continue to monitor any developments as they relate to the ratings.”
Max and IPC announced on March 2 that they had “entered into an Agreement and Plan of Amalgamation pursuant to which Max will amalgamate with IPC Limited. The Boards of both companies have previously stated that the combination of Max with IPC would create a strong company with a balanced, diversified portfolio of risk across a mix of geographies and business lines with the opportunity to generate more stable and attractive returns on capital. Max’s pending merger with IPC is expected to be completed late in the second quarter or early in the third quarter of this year.”
Max Capital’s President and CEO W. Marston (Marty) Becker, issued the following statement: “In today’s unprecedented business environment and cycle, we believe that diversification, in terms of global presence and both short and long-tail exposures, significantly reduces risk and provides a more solid platform for building sustained long-term value.
“The merger of IPC and Max was founded on a shared vision of allowing the combined group of shareholders to enjoy the benefits of a strong, diversified operating platform with a proven track record.
“While we have not yet had the opportunity to review Validus’ proposal carefully, we believe that combining two short-tailed property catastrophe oriented companies would appear to do little for true shareholder diversification. By contrast, Max’s track record of building a diversified platform without diluting shareholder value should lead to better long-term growth prospects and value creation following completion of the pending IPC-Max merger.”
Source Max Capital Group – http://www.maxcapgroup.com
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