Swiss reinsurer Converium has upped the ante in its attempts to fend off the hostile intentions of French rival Scor by mounting a legal challenge in the US.
Converium alleges that Scor and investment vehicle Patinex, which sold its stake in Converium to Scor in February, “unlawfully and unfairly” excluded Converium’s US shareholders, a group which it believes represents approximately 22% of Converium’s outstanding shares, from participating in Scor’s unsolicited tender offer, and “failed to make proper disclosures in connection with their purchase and ownership of Converium securities.”
Converium rejected an unsolicited cash-and-shares proposal by Scor of about SFr21 per share in February. The saga has rumbled on ever since, amid rumours of possible white knight bids but reports in the Swiss press have suggested that this is now less likely.
Among other things, Converium is seeking an order preventing Scor from finalising its offer until the pair have complied with what the Swiss company calls their “obligations”, including Scor extending the offer to Converium’s US shareholders and ADS holders.