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UPDATE 2-Insurer Endurance raises offer for Aspen, rejected again
June 2, 2014 / 12:40 PM / 3 years ago

UPDATE 2-Insurer Endurance raises offer for Aspen, rejected again

* Endurance raises offer by $2.00 to $49.50 per share

* Says Morgan Stanley committed to provide a $1 bln loan (Adds more details, Aspen statement, share price)

June 2 (Reuters) - Endurance Specialty Holdings’ increased offer to buy Aspen Insurance Holdings was rejected for the second time but the insurer said it was willing to launch a proxy fight to get the deal done.

Endurance said on Monday it raised the offer by $2.00 to $49.50 per share, giving Aspen shareholders the option of taking cash or shares or a combination of both.

The offer values Aspen at $3.2 billion.

Endurance said it would call for a special general meeting of Aspen shareholders, where they would consider a proposal to increase the size of Aspen’s board to 19 from 12 members. This would result in a majority of Aspen’s directors standing for election next year.

Aspen shares rose as much as $46.85 on Monday. Up to Friday’s close, they had risen nearly 17 percent since April 14 when Endurance first disclosed its unsolicited bid.

“In addition to grossly undervaluing Aspen, the proposal represents a strategic mismatch and, based on our conversations with major clients and brokers, would result in significantly greater dis-synergies than Endurance claims,” Aspen Chairman Glyn Jones said in a statement.

Reuters reported last month that Endurance was considering increasing its offer to acquire Aspen Insurance to around $50 per share.

Endurance said Morgan Stanley had committed to provide a $1.0 billion bridge loan to fund the takeover.

The company had previously said it would fund the acquisition partly through proceeds of $1.05 billion from a placement of new shares to investors led by CVC Capital Partners Advisory and its affiliates.

Aspen’s shares closed at $45.33 on the New York Stock Exchange on Monday. (Reporting by Amrutha Gayathri and Anil D‘Silva in Bangalore; Editing by Saumyadeb Chakrabarty)

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