Credit: eyewave/Adobe Stock
Beazley has rejected a $10.3 billion buyout offer from Zurich Insurance Group.
The London-based specialty insurer issued a statement Thursday saying it had rejected the bid “on the basis that it materially undervalues” the company.
Beazley said it had previously received three proposals from Zurich in June and “engaged with Zurich appropriately.” But Beazley says the new offer came in below the last June proposal from Zurich, which was for roughly $11.3 billion.
Beazley’s board rejected a bid from Zurich earlier this month of 1,230 pence per share. Zurich came back with a proposal to buy Beazley for 1,280 pence per share, 4% more than its previous offer and a 56% premium to the company’s closing price on Jan. 16. The late-June bid from Zurich had offered 1,315 pence per share.
Beazley’s shares have gone up nearly 30% since Zurich’s Jan. 19 offer was announced. Shares were trading at 1,112 pence as of Thursday morning.
In a note to clients, Jefferies analysts said knowing the January bid was not Zurich’s highest “reframes the debate.”
“We think Zurich can afford better terms, but only up to an additional 10% from 1,280p,” the analysts wrote. “A 3% uplift to 1,315p sits comfortably within this.”
Photo credit: eyewave/Adobe Stock
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