Endurance Specialty Commences Hostile Exchange Offer For Aspen Insurance

(RTTNews) - Aspen Insurance Holdings Ltd. (AHL) Monday said Endurance Specialty Holdings Ltd. (ENH) has begun a hostile exchange offer for shares of Aspen for a combination of cash and stock.

Under the terms of the offer, Aspen shareholders have the right to receive $49.50 in cash for each Aspen share, or 0.9197 Endurance shares for each Aspen share, or a combination 0.5518 Endurance shares and $19.80 in cash for each Aspen share.

The exchange offer will expire at 5:00 p.m., Eastern time, on Friday, August 29, 2014, unless extended.

On June 2, Endurance Specialty had sweetened its bid for Aspen to $49.50 a share in in cash and Endurance shares from its initial offer of $47.50 per share. However, Aspen rejected the proposal, citing that it grossly undervalued the company, represented a strategic mismatch and would result in significant dis-synergies.

Moreover, the Aspen noted that the majority of the consideration included in the proposal consisted of Endurance stock, which is highly unappealing. The consideration mix was of 40 percent cash and 60 percent Endurance shares.

Meanwhile, Aspen today said it will carefully review the exchange offer in consultation with its independent financial and legal advisors and determine the course of action that it believes is in the best interests of Aspen and its shareholders.

Aspen has advised its shareholders to take no action at this time pending formal Board recommendation.

ENH is currently trading at $52.33, down $0.24 or 0.46%, while AHL is trading at $46.40, up $0.08 or 0.17%, both on the NYSE.