Aspen Insurance Holdings Ltd.'s board has adopted a shareholders rights plan to fend off an unsolicited offer by Endurance Specialty Holdings Ltd. to buy Aspen for $3.2 billion in cash and stock.
Aspen rejected the offer outright.
The plan calls for issuing one preferred share purchase right on each share of Aspen's ordinary shares issued and outstanding at the close of business on April 28, Hamilton, Bermuda-based Aspen said in a statement Thursday. The plan expires on April 16, 2015, and the board may terminate the plan at any time if it no longer believes it is in the best interests of Aspen and its shareholders.
Pembroke, Bermuda-based Endurance immediately criticized Aspen's adoption of the plan, referring to it as a “poison pill” in a statement issued Thursday.
“At a time when the Aspen board should be seriously considering an opportunity to deliver significant value to its shareholders, it is instead focused on blocking them from receiving that value and on taking actions to entrench themselves,” said Endurance Chief Financial Officer Michael J. McGuire in the statement. “This is not a surprise given the lack of alignment and clear disdain Aspen's board has shown for its shareholders in summarily rejecting our proposal without any discussion whatsoever.”
Aspen representatives were not immediately available for comment.