Beazley turns down Zurich’s $10.2bn buyout bid, citing undervaluation

Core Viewpoint - Beazley has rejected Zurich Insurance Group's $10.2 billion takeover proposal, stating that the offer significantly undervalues the company and its long-term prospects as an independent entity [1][3]. Group 1: Beazley's Position - Beazley's board unanimously rejected the cash offer of 1,280 pence (£12.80) per share, asserting that it does not meet the value of the company [1]. - The board emphasized its commitment to maximizing shareholder value and is open to various options to achieve this [3]. - Beazley expressed confidence in its standalone prospects and the fundamentals of its business model [3]. Group 2: Zurich's Strategy - Zurich has increased its offer to acquire Beazley and has engaged in limited due diligence discussions with the company [2]. - If the acquisition were successful, the combined entity would generate approximately $15 billion in gross written premiums and be headquartered in the UK [2]. - As an alternative strategy, Zurich is preparing to launch its first syndicate at Lloyd's of London, which would allow it to utilize private capital for underwriting risks [4].