Wednesday, 17 June 2015

What's on the radar? - part 2

Insurer Axis Capital Holdings was in demand during yesterday's trading session in the US.

Axis's shares jumped as much as 6pc before settling a bit to close 4pc higher at around $57.

The talk in the market is Adam McNestrie over at top trade rag The Insurance Insider is onto something with his multiple stories about Arch Capital Group's interest in purchasing Axis, whose market capitalisation currently stands at just under $6 billion.

Here are links to The Insurance Insider's pieces:

http://www.insuranceinsider.com/-1254915/1

http://www.insuranceinsider.com/arch-could-move-for-axis

For readers unfamiliar with this situation, Axis has been in merger talks with rival Bermuda-based insurer Partners Re to create an $12 billion (re)insurer.

However, the Axis-Partners Re merger could fall apart after the Agnelli family trust, Exor, launched its own $6.4 billion takeover bid for Partners Re.

So, I guess the Axis-Partners Re deal really could be in jeopardy if Arch does make a move on Axis...

No comments:

Post a comment