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After its initial offer of $65 per share to acquire The Hartford was rejected, insurer Chubb came back with two additional offers of $67 and then $70 per share, The Hartford reported today in its first quarter filings.
The Hartford’s board of directors unanimously rejected each of Chubb’s proposals, determining that “entering into discussions regarding a strategic transaction would not be in the best interests of the company and its shareholders.”
On March 11, Chubb CEO Evan Greenberg proposed an acquisition of Hartford Financial Services for about $23.2 billion in cash and stock in what would have been one of
Chubb Ltd.’s $23 billion takeover offer for Hartford Financial Services Group Inc. has prompted Germany’s Allianz SE to study the feasibility of a counteroffer, according to people familiar with the matter.
Europe’s biggest insurer is discussing its options with potential advisers, said the people, asking not to be identified because the discussions are private. While Allianz views Hartford as one of the remaining property and casualty insurance targets with scale in the U.S., it’s also reluctant to enter into a pricey bidding war with Chubb because of a lack of synergies between the two, the people said.
Chubb, the largest US non-life insurer by market capitalisation, has approached rival Hartford Financial Services Group with an unsolicited $23.2bn takeover offer, in what could be the first mega-deal in an industry battered by losses stemming from the coronavirus pandemic.
The company led by Evan Greenberg said it had offered $65 per share to buy Hartford, a 13 per cent premium on the Connecticut-based group’s closing share price on Wednesday before news of a potential approach emerged on Thursday. The offer was mostly cash and some stock, said Chubb, without providing exact details.
Chubb Ltd., the global insurer led by Evan Greenberg, is exploring an acquisition of Hartford Financial Services Group Inc. in what could be one of the industry’s biggest deals in years, people familiar with the matter said.
The New York-listed insurer has made a preliminary takeover approach for Hartford, said the people, who asked not to be identified because the discussions are private. Deliberations are at an early stage and may not lead to a transaction, they said.
A representative for Hartford wasn’t able to immediately comment. A representative for Chubb couldn’t be immediately reached for comment.
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