The offer gains importance in the wake of amended terms of proposed merger between IPC and Max Capital.

Validus, a provider of reinsurance and insurance services, has announced a further increment in offer to the board of directors of IPC Holdings for the merger of Validus and IPC.

As per the enhanced offer, IPC shareholders will receive $3.75 in cash for each IPC common share (an increase of $0.75 from Validus’ previous offer), and 1.1234 Validus voting common shares.

As per the proposed IPC-Max merger, IPC shareholders will receive $2.50 per share in cash while Max shareholders will receive $1.00 in cash for each share post-closing.

Validus is also amending the terms of previously announced scheme of arrangement, and exchange offer for all of the outstanding common shares of IPC.

Ed Noonan, Chairman and CEO, Validus, said: “Unlike the proposed amalgamation with Max, the Validus offer provides a substantial premium to IPC shareholders, a significantly larger cash component, and the opportunity to benefit from being part of a much stronger, far more profitable, and well diversified company.

“We are fully committed to providing IPC shareholders with the superior economics of our offer if the proposed Max amalgamation is rejected at IPC’s shareholders meeting on June 12th,” he added.