Chubb is offering $23 billion to buy smaller rival The Hartford in a deal they call "financially compelling for both sets of shareholders."
"This proposal would value The Hartford at $65.00 per share and represents a premium of 26% based on its unaffected 20-day volume weighted average share price of $51.70 as of March 10, 2021. The consideration represents a mix of stock with the majority in cash" as outlined in the offer announcement.
"We have not yet received a response to our proposal but are looking forward to constructive, private discussions in order to expeditiously consummate a fair transaction that benefits all of our respective stakeholders" Chubb added.
The Hartford on Thursday confirmed Chubb's "unsolicited, non-binding proposal" for the 200-year-old insurance company.
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"The Hartford’s Board of Directors is carefully considering the proposal with the assistance of its financial and legal advisors. The Board of Directors is committed to acting in the best interests of shareholders over the long term" the company disclosed in a statement.
Hartford has a market cap of around $23 billion, smaller than Chubb's $75 billion.
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Bloomberg News was first to report the possibility of a deal. Other insurers including MetLife and AIG were also in focus.
*This story, originally published on 3/18/21, has been updated.