GO
Loading...

Converium in Talks with White Knight Bidders

Swiss reinsurer Converium is looking for rival bidders to fend off Scor's hostile takeover attempt but has not yet received any firm offers, the company said on Friday.

"We are increasingly considering the option of finding a white knight," spokesman Beat Werder said.

"We are in talks, but there are no formal offers on the table other than the one you've seen from Scor," he said.

Converium last month rejected Scor's 3 billion Swiss franc ($2.46 billion) informal bid for its business as too low, but analysts say will be tough to battle the French group because it already holds a third of Converium's stock.

The two groups showed a poor business fit, Werder said, and a possible white knight bidder could well come from the one of the Bermuda-based reinsurers, which often have large U.S. exposure but little business in Europe.

"A strategic business fit is more likely to be found from companies who are not as strong in the European markets ... especially Bermuda-type businesses," Werder said.

Scor plans to offer half a new Scor share plus 4 Swiss francs in cash for each Converium share, equalling roughly 21 francs at the time of the bid. But the offer has since lost value because Scor's share price has fallen.

Contact U.S. News

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    › Learn More

Don't Miss

U.S. Video

  • The "Squawk Alley" team discusses reports Russian hackers have attacked U.S. banks. CNBC Kayla Tausche says banks deal with over 100,000 attempted hacks a day.

  • The "Squawk Alley" crew and Scott Stein, CNET.com senior editor, discuss the numerous smartwatches that are about to hit the market. Stein says the smartwatch space is a "numbing mess."

  • The Park City Mountain Resort may not have a ski season unless owners of the top of the mountain come to terms with owners at the bottom. Alan Sullivan is attorney for John Cumming, owner of PMCR, which controls the bottom and is fighting Vail Resorts for access to the top.