(Bloomberg) — Aspen Insurance Holdings Ltd. adopted a so-called poison pill to discourage a hostile takeover after rebuffing a $3.2 billion buyout offer from Endurance Specialty Holdings Ltd. Aspen declined the most since February in New York trading.
The one-year plan will allow shareholders to buy stock at discounted prices if a person or group acquires 10% or more of the company, according to a statement today from Bermuda-based Aspen. The threshold is 15% for passive, institutional investors. The move is meant to make a hostile takeover too costly.
Endurance made its cash-and-stock offer public April 14, saying crop insurance would complement Aspen's offerings in the Lloyd's of London market, lead to better underwriting and save costs. Aspen called the offer "ill-conceived."
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