Having just secured a 32.9% share capital in Converium, French reinsurer Scor has confirmed its intentions to launch a bid for the remaining shares of the Swiss reinsurance company, despite having previously placed a 100% takeover bid that was rejected on the grounds that that it did not recognize the value of Converium's franchise and growth prospects.
<p>According to MarketWatch, Scor plans to table a hostile bid that equates to around $2.5 billion, which is the same price as its previous bid, and stated that the offer is conditional on obtaining acceptances relating to at least 50% of Converium shares. <br /><br />The bid is expected to be placed around April 2, 2007 and will expire in June 2007, reported MarketWatch. If successful, the merger will position Scor as one of the top five reinsurers around the world. <br /><br />The consolidation in the insurance and reinsurance industries shows that size, diversification and expertise are critical success factors, said Scor CEO Denis Kessler, cited in MarketWatch. They generate competitive advantages and lead to superior value creation.</p>