Tower rejects rival bid

Tower Group has rejected a competing bid from European insurer Euroins Insurance Group (EIG), stating that the offer was inferior.

The bid, which represented a 50 percent premium on the offer from AmTrust, had a recommended offer price of $3.75.

The insurer said that after due consideration and consultation, the board of directors had unanimously decided to reject EIG’s proposal.

The board decided that the proposal was less certain, riskier for Tower and would take longer to complete as compared to the transaction contemplated by the merger agreement with ACP Re.