Swiss reinsurance firm Converium's board of directors has unanimously welcomed a revised, CHF3.4 billion offer from France's Scor, and recommended that shareholders accept the improved offer.
Under the terms of Scor’s revised offer, each Converium share may be exchanged for 0.5 new Scor shares plus CHF5.5 in cash. The previous offer was 0.5 new Scor shares plus CHF4 in cash. Based on the closing price of Scor shares on Euronext Paris on May 9, 2007, the offer price values each Converium share at CHF23.2.
The increase in the offer price represents a significant improvement in the consideration offered to our shareholders, said Markus Dennler, chairman of Converium’s board of directors. The offer price recognizes our remarkable turnaround of the past two years. It further reflects the exceptional quality of our staff, longstanding client relationships and excellent growth prospects supported by a strong capital position.
Scor has pledged to retain all of Converium’s staff in Switzerland for at least a year after the closing of the deal, and has also stated that it intends to retain a strong presence in Zurich.