Chubb Corp. and its bankers at Guggenheim Securities opted against seeking competing offers before the insurer agreed to be purchased by Ace Ltd. for more than $28 billion.
“It was not asked by the Chubb board to, and Guggenheim Securities did not, solicit indications of interest from any potential strategic acquirers or merger partners,” according to a regulatory filing Monday tied to the Ace agreement. Still, Guggenheim considered discussions that Warren, New Jersey-based Chubb or its representatives had with “certain third parties from time to time,” according to the document.
Ace Chief Executive Officer Evan Greenberg has said his Zurich-based company will be able to cut costs after the acquisition and will expand through the deal in workers’ compensation and commercial auto coverage. He agreed to pay about $124.13 a share for Chubb, or 30 percent higher than the company’s closing price on the day before the deal was announced.
Chubb agreed to the offer after Greenberg previously indicated he’d be willing to pay a 25 percent premium, according to the filing.
The target company accepted the deal because of the view that joining Ace will “create a global leader in commercial and personal property and casualty insurance, with enhanced growth and earning power and an exceptional balance of products as a result of greater diversification,” the filing shows.
Chubb Chairman and CEO John Finnegan, 66, will assist the combined company with integration and be an executive vice chairman once the deal is completed. Before the agreement was announced, he had disclosed plans to step down at the end of
Mark Greenberg, a spokesman for Chubb, didn’t immediately return a message seeking comment after regular business hours.