Zurich discloses stake in Beazley after takeover snub

Zurich Insurance Group has revealed a involvement of astir 1.47% successful UK-based specialty insurer Beazley.

This follows the caller rejection by Beazley of Zurich's takeover bid.

The Swiss insurer present holds astir 8.87 cardinal shares successful Beazley, which equates to astir 1.47% of the company’s listed shares, according to a filing.

Last month, Beazley’s committee dismissed Zurich’s $10.2bn (SFr8.06bn) buyout offer, which valued the specialty insurer astatine 1,280p (£12.80) per share.

As its rationale for rejecting the offer, the institution said the connection “materially undervalues Beazley and its longer-term prospects arsenic an autarkic company”.

The committee unanimously turned down the caller bid, noting it was inactive little charismatic than a erstwhile attack made by Zurich successful June past year, which was besides rejected.

Beazley noted that it has nevertheless kept discussions unfastened with Zurich, granting the Swiss security institution “certain constricted owed diligence accusation successful a bully religion effort”.

Alongside its involvement successful Beazley, Zurich is moving toward establishing its archetypal syndicate astatine Lloyd’s of London.

The syndicate would springiness Zurich entree to backstage superior for underwriting wrong the Lloyd’s security marketplace and presents an alternate way should its effort to get Beazley autumn through.

Details astir the syndicate were initially reported by the Financial Times.

Zurich CEO Mario Greco indicated that preparations for the Lloyd’s syndicate are nearing completion.

Negotiations betwixt Zurich and Lloyd’s are reportedly progressing, with a imaginable commencement day for the caller syndicate arsenic aboriginal arsenic 2 April.

"Zurich discloses involvement successful Beazley aft takeover snub" was primitively created and published by Life Insurance International, a GlobalData owned brand.

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