After
Aspen Insurance Holdings rejected Endurance Specialty Holdings Ltd.’s $3.2 billion takeover bid in April, Endurance increased its offer from $47.50 per share to $49.50.
This bid represents a $35 million increase from the last one Endurance issued, and would have been partially funded by a $1 billion bridge loan committed by Morgan Stanley.
Unfortunately for Endurance, their bid was unanimously rejected by Aspen’s board of directors.
"Endurance's revised proposal represents a backwards step in their efforts to pursue what has always been an ill-conceived transaction,” said Aspen chairman Glyn Jones.
As a result, Endurance has formulated a new strategy. The company is calling for a special general meeting with Aspen shareholders, in an attempt to increase the size of Aspen’s board from 12 members to 19.
If successful, a majority of Aspen’s board members would then be up for election in 2015, which could usher in new leadership favorable to a merger with Endurance.
"We will not be deterred by an entrenched board and management that refuse to engage productively on the merits of our compelling proposal,” said Endurance Chairman and CEO John R. Charman.
“The actions we have announced today provide a path for our respective shareholders to realize the substantial benefits of the combination of Endurance and Aspen. We will continue to pursue and execute upon these and other available means to reach a successful outcome.”
Jones, however, does not appreciate Charman’s determination, and feels that Endurance’s plans are overly ambitious and inappropriate.
“As illustrated by these desperate and unusual legal tactics of Endurance, Aspen continues to believe that Endurance simply has no clear or compelling path to force its unattractive proposal on our board and our shareholders. We intend to defend vigorously against these latest coercive tactics by Endurance."
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