Beazley rejected a £7.67 billion ($10.3 billion) takeover bid from Zurich Insurance on Thursday, citing that it "materially undervalues" the UK speciality insurer and was lower than another proposal it rejected last year.
The rejection sent Beazley shares down about three per cent following a rally fuelled by optimism over Zurich's offer of 1,280p per share. The bid was at a 56 per cent premium to Beazley's last closing price before the approaches were disclosed on Monday.
Beazley said Zurich's latest proposal was below the previous proposal of 1,315p apiece put forward by the Swiss group last June - also rejected by Beazley.
At the price, a deal for Beazley would have an implied equity value of £8.4 billion, the company added.
Zurich Insurance, Europe's second-largest insurer by market value, did not immediately respond to a Reuters request for comment.
The company has been looking to build out its speciality insurance business, and sees Beazley as a highly complementary fit given its expertise in marine, cyber, aviation and space, and fine art insurance.
Beazley has stated that it participates in the insurance of approximately 20 per cent of the world’s ocean-going tonnage.
(Reporting by Yamini Kalia and Pushkala Aripaka in Bengaluru; Editing by Rashmi Aich and Sherry Jacob-Phillips)
