Tower Group receives bid from European insurer

Insurer Tower Group has received a competing bid from Euroins Insurance Group (EIG), a South East European insurer which represents a 50 percent premium on the offer from AmTrust.

EIG submitted a letter to the board of directors proposing to acquire all of the company’s outstanding stock, and outstanding options to acquire such shares, in a recommended offer at a price per share of $3.75.

EIG stated that it intends to complete due diligence on Tower before its offer became definite.

In January 2014, Tower announced that it had agreed to merge with ACP Re, the Bermuda reinsurer owned by AmTrust, and pay Tower shareholders $3 per share. On May 8 ACP Re lowered its offer to $2.50 per share.

“EIG intends and is ready to recapitalize the company to the industry norms and standards and to be able to complete such an agreement within weeks from the beginning of the due diligence period. EIG has requested that the Company respond promptly to the Proposed Offer,” said the company.

“EIG believes that a combination of the Company and EIG would result in substantial benefits to both our shareholders and to the Company’s employees.”