Converium urges shareholders to reject SCOR’s offer

Converium Holding AGs board of directors is urging its shareholders to reject SCOR S.A.s offer to purchase the registered shares in Converium held by the public, claiming that the offer fundamentally undervalues the Companys franchise and growth prospects.
After careful consideration of SCORs offer, we urge our shareholders to place their confidence in our managements detailed and credible plan for sustainable future value creation, Markus Dennler, chairman of Converiums board of directors, said in a statement.
Our standalone forecasts for shareholder returns outstrip SCORs for the combined business, reflecting our operational strength and potential for profitable growth in the wake of our recent rating upgrade from Standard & Poors, he added.
According to information from Converium, SCORs offer price represents only a 12.3% premium compared with the closing stock market price of Converiums shares on February 16, 2007, the day preceding the announcement by SCOR of its acquisition of 32.9% of Converiums outstanding shares.
In addition, the board of directors anticipates significant business, integration and execution risks arising from the hostility of SCORs offer, the Converium statement says.
The hostile nature of the bid threatens to destroy value for Converiums stakeholders and to undermine the stability of SCORs shares, the bulk of its acquisition currency.