* Endurance's offer of $47.50/share represents a premium of
* Says deal with Aspen to add to earnings in 2015
* Aspen rejects offer, saying proposal undervalues company
(Adds Aspen's response, analyst comments; updates shares)
By Neha Dimri
April 14 Insurer Endurance Specialty Holdings
Ltd made an unsolicited bid to acquire Aspen Insurance
Holdings Ltd for about $3.2 billion, an offer that Aspen
Endurance's cash-and-stock offer of $47.50 per share
represents a premium of about 21 percent to Aspen's Friday close
on the New York Stock Exchange.
"Despite our repeated attempts since late January to engage
in confidential and friendly discussions, Aspen's board and
management have rebuffed our proposal and refused to engage with
us," Endurance Chief Executive John Charman said in a statement.
Aspen's shares were trading well below the offer price at
$43.69 before noon. Endurance shares were down 1.5 percent at
"With Aspen's half of the premium coming from casualty line
... there is more reserve risk then some of the other deals we
have seen in past couple of years," Keefe, Bruyette & Woods Inc
analyst Meyer Shields said, adding that he was skeptical of most
insurance companies' acquisition activity.
Aspen said the proposal undervalued the company, represented
a strategic mismatch and carried significant execution risk.
"Endurance has shown a public disdain for Lloyd's (of London
insurance market), which is the growth engine of Aspen's
well-established international insurance business," Aspen said
in a statement.
Endurance, however, said its crop insurance products would
complement Aspen's businesses, including its Lloyd's operations.
Endurance also estimated annual savings of more than $100
million and said it expected a potential deal to add to earnings
The company said it would fund the acquisition partly
through proceeds of $1.05 billion from placement of new shares
to investors led by CVC Capital Partners Advisory and its
Morgan Stanley & Co and Jefferies LLC are acting as
financial advisers to Endurance, while Goldman Sachs is advising
(Reporting by Neha Dimri in Bangalore; Editing by Saumyadeb
Chakrabarty and Kirti Pandey)