SCOR announces that it has acquired 32.9% of the share capital of Converium Holding AG.
SCOR strongly believes that the combination of Converium and SCOR is a unique strategic opportunity to create a Top 5 global multi-line reinsurer in this time of market consolidation. This combination is based on very strong industrial, economic and financial rationales.
SCOR has irrevocably secured 32.9% of the share capital of Converium: 8.3% through direct market purchases and 24.6% through share purchase agreements, the consummation of which is subject to regulatory approvals. The consideration for the block acquisitions consists of 20% cash and 80% newly issued SCOR shares, collectively representing a price of CHF21.1 per Converium share based on the closing share price of SCOR on Friday, February 16, 2007.
SCOR has approached the Converium Board of Directors and its management to discuss the compelling proposal to combine the companies and to solicit the Board’s recommendation for a full offer on Converium. SCOR regrets the Converium Board’s initial reaction to the proposal that was published earlier today.
SCOR is fully convinced that the combination of Converium and SCOR is in the best interest of both companies, their shareholders and stakeholders.