Boston, MA 06/02/2014 (wallstreetpr) – The $3 billion market capped property, casualty and reinsurance company Aspen Insurance Holdings Limited (NYSE:AHL) is in a big fight for independence. The company that serves the U.S., U.K, Southeast Asia and Latin America insurance markets is fighting against a takeover bid that could take a hostile approach sooner than later.
The company is being targeted by Endurance Specialty Holdings Ltd. (NYSE:ENH) for a takeover and its board and the management have refused to endorse the takeover proposals. However, Endurance has vowed to leave no stone unturned in its efforts to purchase Aspen.
In the latest move, Endurance has sweetened its proposal for Aspen by offering $2 per share more on its previous proposal. As such, Endurance is ready to pay $49.50 per share of Aspen, and that values the company at about $3.2 billion.
Endurance has tapped Morgan Stanley (NYSE:MS) to advise it on the takeover while it is being backed by private equity firm CVC Capital Partners. The private equity firm has agreed to acquire shares in the combined company. However, before that combination takes place Endurance must endure the rigid board and management team of Aspen Insurance Holdings Limited (NYSE:AHL) that has already rejected its bids.
In the sweetened bid, Endurance leaves it up to shareholders of Aspen to choose cash, stock or a combination of cash and stock in the transaction.
Although the previous bids for Aspen were made privately, Endurance went public over the matter in a clear indication that it is seeking the backing of Aspen shareholders that it believes would love the premium offer.
Endurance NYSE:ENH) previously offered $47.50 per share of Aspen Insurance Holdings Limited (NYSE:AHL).
Hostile Takeover Approach
Aspen Insurance Holdings Limited (NYSE:AHL) took precautionary measures in April when it first declined an offer from Endurance to stall hostile acquisition. Under the shareholder rights plan, or the so-called poison pill, Aspen sought to make hostile takeover too expensive for Endurance.
However, if sentiments from Endurance executives are anything to consider, the company will not be discouraged by a poison pill measure. Endurance said it would wage a proxy fight and it has already filed a document with the Securities Exchange Commission to convene a special meeting of Aspen shareholders. In the meeting, Endurance seeks to increase Aspen’s board membership from 12 to 19.
Getting The Deal Done
According to John R. Chairman, the CEO of Endurance, the refusal by the board and management of Aspen Insurance Holdings Limited (NYSE:AHL) to accept the bids will not deter Endurance from getting a deal done.
