Beazley rejects Zurich Insurance's $10.3B takeover bid

Core Viewpoint - Beazley Plc has rejected Zurich Insurance Group AG's £7.7 billion ($10.3 billion) takeover offer, stating that it significantly undervalues the company and its future prospects [1]. Group 1: Takeover Proposal Details - Zurich's latest cash proposal was 1,280 pence per share, which is lower than its previous offer of 1,315 pence per share made in late June, valuing Beazley at £8.4 billion [2]. - Beazley’s board received three proposals from Zurich in June 2025 and engaged with them appropriately, but ultimately found the latest bid unsatisfactory [2]. - The latest offer represents a 56% premium over Beazley's closing price on January 16, but shares were trading at 1,112 pence, 1% lower at the time of the announcement [3][4]. Group 2: Market Reaction and Analyst Insights - Beazley’s shares have increased nearly 30% since the announcement of Zurich's January 19 offer, yet they remain below the proposed offer price [4]. - Analysts from Jefferies noted that the rejection of the latest offer reframes the negotiation landscape, suggesting that while Beazley’s board may find it challenging to accept an offer below 1,315 pence, a deal could still be feasible [5]. - The analysts believe that Zurich could potentially improve its offer by up to an additional 10% from the current 1,280 pence, with a 3% increase to 1,315 pence being a reasonable expectation [5].