Scor, the French reinsurance company, launched a hostile bid for the remaining shares in Converium Monday, Scor’s Zurich-based rival, but investors held out for more than the $2 billion offer, Reuters reported. The proposed merger would create one of the world's top five reinsurers.
Converium rejected Scor's informal offer of 21 Swiss francs a share last week, which valued the whole company at about 3 billion francs ($2.4 billion). The rejection led takeover talks to break down, according to Reuters.
Scor claimed it had the support of Converium's main shareholders and would go ahead and present investors with a hostile bid over the heads of management, Reuters reported.
Scor plans to offer half a new Scor share plus 4 Swiss francs in cash for each Converium share, starting in April. Excluding the shares it has already bought, the new offer would cost Scor 2.4 billion Swiss francs, or $1.9 billion, according to Reuters.
Converium again rejected the Scor revised announcement, saying it changed nothing from the French company's previous approach, said Reuters.