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Validus Revises Amalgamation Agreement To IPC

IPC shareholders would receive $3.75 in cash and 1.1234 Validus voting common shares for each IPC share, for a total consideration of $27.26 per share

Validus Holdings (Validus), a provider of reinsurance and insurance services, has revised the amalgamation agreement to IPC Holdings (IPC), that addresses concerns articulated by IPC.

According to previously declared Validus offer terms, IPC shareholders would receive $3.75 in cash and 1.1234 Validus voting common shares for each IPC common share for a total consideration of $27.26 per share, based on Validus’ price on June 22, 2009. The Validus offer provides a 24.9% premium based on IPC’ and Validus’ closing prices on March 30, 2009, the last trading day before the announcement of Validus’ initial offer.

In connection with the announcement, Validus stated: “We have offered a number of concessions to IPC to be responsive to their stated concerns, including allowing IPC’s Board the right to perform a limited market check after the signing of an agreement with Validus, eliminating the book value termination right so that the closing will not be affected by catastrophe risk, and agreeing to an enhanced severance plan for IPC employees. However, none of the information that we have received from IPC would justify changing the economic terms of our offer.”