SCOR opens offer on Converium

PARIS— SCOR S.A. has opened its tender offer to purchase Swiss rival Converium Holding Ltd.

Paris-based SCOR gained approval last week from the Swiss Takeover Board to proceed with the offer, which expires July 9. For each of Zurich-based Converium's shares, SCOR is offering half a SCOR share, 5.50 Swiss francs ($4.43) and an amount in Swiss francs equal to 40 euro cents ($0.53), which represents half of Converium's per-share dividend last year.

The combination of reinsurers will create a top-five global multiline reinsurance company in terms of gross premiums written, SCOR said in a statement.

"This project will create value by reinforcing the competitive position of the new group, by deepening its expertise and competencies, by raising the level of its risk management and by widening its degree of diversification," said Denis Kessler, SCOR's chairman and chief executive officer, in the statement.