Tower Group and ACP Re amend deal

Beleaguered insurer Tower Group and ACP Re, the Bermuda reinsurer owned by AmTrust Financial Services, have amended their merger agreement to reduce the consideration by $0.50 per share to $2.50.

Tower and ACP Re entered into a merger agreement in January 2014. This amendment to that deal reduces the per share consideration from $3.00 per share to $2.50 per share, reduces the termination fee that Tower would be required to pay to ACP Re in the event of a termination of the merger agreement, and extends to November 15, 2014 both the date by which Tower must hold its shareholders meeting to vote on the merger and the deadline for completing the merger before either party can terminate the merger agreement.