Bermuda-based Validus Holdings, announced that it has delivered a further increased offer to the Board of Directors of IPC Holdings for the amalgamation of Validus and IPC.
Validus said its increased offer would give IPC shareholders $3.75 in cash for each IPC common share, an increase of $0.75 per share in cash from Validus’ previous offer, and 1.1234 Validus voting common shares.
Validus increased its offer after Max Capital, its rival for IPC, announced that it would pay two cash dividends, if it won out over Validus (See IJ web site – https://www.insurancejournal.com/news/international/2009/06/08/101161.htm).
The increased offer provides IPC shareholders with total consideration of $30.67 per IPC share based on Validus’ closing price on Friday, June 5th, 2009, a 9.8 percent premium to IPC’s closing price that day and a 24.9 percent premium based on the closing prices of Validus and IPC on March 30, 2009, the last trading day before the announcement of Validus’ initial offer.
“This significant cash increase maintains the clear superiority of Validus’ offer,” stated Ed Noonan, Validus’ Chairman and CEO. “Unlike the proposed amalgamation with Max, the Validus offer provides a substantial premium to IPC shareholders, a significantly larger cash component, and the opportunity to benefit from being part of a much stronger, far more profitable, and well diversified company. We are fully committed to providing IPC shareholders with the superior economics of our offer if the proposed Max amalgamation is rejected at IPC’s shareholders meeting on June 12th.”
Source: Validus Holdings – www.validusre.com
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