Billionaire Loeb terminates SiriusPoint takeover talks, leaves to forge own path
SiriusPoint and its largest shareholder Daniel Loeb (pictured right) have terminated acquisition talks, having been unable to reach a “consensus” with its board on the value of the potential deal. The Bermuda-based global specialty re/insurer is now looking to chart its own path with “unanimous” confidence in its current strategy.
Billionaire investor Loeb, who was looking to acquire “all or substantially all” of the interest in SiriusPoint and take the company private, has exited discussions after debating on the value of a potential transaction with its Special Committee formed earlier in April, management confirmed Friday, May 12.
The Special Committee, including all non-executive directors of the SiriusPoint board, and its management have determined that its current strategy, led by its chief executive officer Scott Egan (pictured left), is the “best path to deliver enhanced long-term value for shareholders”.
Loeb revealed in a securities filing that he is no longer looking to acquire SiriusPoint as they have been “unable to reach consensus on the value of a potential transaction”.
SiriusPoint acknowledged Loeb’s support for the company’s management team and strategy, but argued that the company has made significant progress during the last seven months to improve underwriting performance, reduce volatility and rebalance its investment portfolio towards high-quality fixed-income assets, which, it said, was evidenced by its strong first quarter results reported recently.
“The Committee and management team are committed to acting in the best interests of the Company and all shareholders,” management said in a statement.
Loeb owns approximately 9.34% stake in the company and sits on SiriusPoint board of directors. He is the founder and CEO of the asset management firm Third Point, and was the founder of Third Point Re and instrumental in the merger of the company with Sirius Group to create SiriusPoint in 2021.
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