SCOR rejects takeover offer by Covéa
French mutual insurance company Covéa proposed to acquire a majority stake in SCOR but the proposal was met with unanimous opposition from SCOR's executive committee.
SCOR has confirmed that on Aug. 24, 2018, Covéa sent a letter to SCOR proposing to initiate discussions relating to a project which would see Covéa acquiring a majority stake in SCOR's share capital and voting rights.
The conditions for the implementation of this project set forth in Covéa's letter included the requirement of a favourable recommendation by the board of directors of SCOR and the execution of a business combination agreement with SCOR.
On Aug. 30, 2018, SCOR's board of directors reviewed the terms and conditions of this unsolicited proposal in detail and determined that it is fundamentally incompatible with SCOR's strategy of independence, which is a key factor of its development, that it would jeopardize the group's strong value-creating strategy and that it reflects neither the intrinsic value nor the strategic value of SCOR. The proposal was met with unanimous opposition from SCOR's executive committee. In view of this, any public bid would be deemed hostile.
The board of directors of SCOR unanimously decided to refuse to initiate discussions with Covéa. It has reaffirmed its complete trust in SCOR's management to continue to create value.
SCOR therefore “reaffirms its independence and acknowledges Covéa's decision to withdraw its proposal on a potential combination,” according to an official statement.
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