Endurance Specialty Holdings Ltd. terminated its offer to buy Aspen Insurance Holdings Ltd. after the target company rebuffed the hostile bid.
“Aspen’s focus on defensive self-preservation tactics rather than value creation” made the offer impractical, Endurance Chairman John Charman said in a statement today. Endurance had offered about $3.2 billion in cash and stock, based on its share price on June 2, when the company made its second bid.
The withdrawal is a victory for Aspen Chairman Glyn Jones who worked to fend off the bid and urged his shareholders to reject proposals from Endurance to shake up his board. The target company said last week that its investors opposed Endurance’s plans to increase the size of Aspen’s board to 19 from 12 to ease a takeover.
Aspen slipped 2.8 percent to $40 at 4:24 p.m. in extended trading in New York.
Aspen had said Endurance offered too little and that combining the Bermuda-based insurers would alienate clients seeking to spread their risk. Endurance had said a combination would create a stronger, more diversified insurer.