Validus Holdings Ltd. reiterated its unsolicited offer for reinsurer IPC Re on Thursday, one day after Flagstone Reinsurance Limited made a higher competing bid.
Validus' bid of 1.1234 of its shares plus $3.75 in cash for each IPC share would amount to an offer of $28.86 per share, or $1.61 billion, based on Wednesday's closing price.
But on Wednesday, Flagstone offered 2.638 common shares plus $5.50 in cash for a bid of $33.62 for each IPC share. That represents a 21 percent premium over IPC's closing price of $27.77.
Validus remains strongly committed to our outstanding offer to acquire IPC, which we firmly believe represents a full and fair value for IPC shares, the company said in a statement.
IPC sought other suitors last month after saying the Validus bid was too low.
Earlier in June, IPC shareholders rejected a deal with rival insurance company Max Capital Group Ltd. Validus made a competing offer for IPC in March and had worked for months to thwart the Max deal.
(Reporting by Juan Lagorio; Editing by Lisa Von Ahn)