NEW YORK – Aspen Insurance Holdings Limited said its board has unanimously agreed to reject the unsolicited offer for the company from Endurance Specialty Holdings Ltd. , arguing it does not reflect the value of Aspen's business. Endurance on June 2 said it's offering $49.50 a share in cash and Endurance common shares for each Aspen share, in a deal worth $3.2 billion. "We are highly confident that Aspen can achieve more value for its shareholders -- and without the significant risks that are inherent in a merger with Endurance -- by continuing to execute its strategic business plan," Glyn Jones, chairman of the Aspen board, said in a statement. Jones said there is a "fundamental strategic mismatch" between Aspen and Endurance, and the 60% stock component of the offer is " highly unappealing given Endurance's unattractive business mix, with an overreliance on the volatile, low-margin and challenged crop insurance business and a dependency on reserve releases to fuel earnings." He urged shareholders not to tender their shares to Endurance and not to be swayed by the company's "coercive" legal tactics. Shares were not yet active.
Copyright © 2014 MarketWatch, Inc.