'Our offer is better than yours', says Validus boss
Ed Noonan, chairman and chief executive officer of Validus, has called on IPC Holdings’ shareholders to vote against the merger with Max Capital Group.
IPC has agreed to merge with Max but Validus has offered a counter bid with a cash component of $3 a share, plus 1.1234 Validus shares for each IPC share.
“Our offer – which provides a significant premium to IPC’s share price and a $3 cash component per share – is clearly a better deal than the proposed Max amalgamation, which provides no consideration to IPC’s shareholders and inferior growth prospects,” said Noonan.
But earlier this month, Kenneth Hammond, chairman of IPC’s board of directors said: “The board strongly urges shareholders not to tender their shares to the Validus exchange offer. The IPC board continues to believe that the combination with Max will provide superior value and benefits to all IPC shareholders and recommends that they vote in favour of the amalgamation with Max.”
IPC?shareholders, of which 200 are institutional investors, will vote on the merger on 12 June.