A Swiss reinsurer is saying “non” to an unsolicited offer from a French reinsurer.
Converium Holding Ltd., Zug, Switzerland, has rejected a takeover bid with a value of about $2.5 billion from SCOR, Paris.
The SCOR bid “fundamentally fails to recognize the value of Converium’s franchise and growth prospects” and is not in the best interests of Converium shareholders, Converium says in a statement.
Converium’s board believes the company can achieve a sustainable 14% annual return on equity by 2009, the company says.
SCOR says it already has acquired 32.9% of Converium’s shares.