IPC, Max Capital waiting period ends; merger could close in June

By Lisa Kerner

Charlotte, N.C., April 15 - The Federal Trade Commission granted early termination of the Hart-Scott-Rodino waiting period in the proposed merger of IPC Holdings, Ltd. and Max Capital Group Ltd., the companies announced on Wednesday.

Max Capital and IPC said they expect the transaction to close in June, subject to approval by shareholders of both companies.

IPC and Max agreed to combine in a stock-for-stock transaction valued at approximately $912 million. Max shareholders will receive 0.6429 IPC shares for each Max share.

Validus Holdings, Ltd. offered to acquire IPC in a share-for-share exchange that values IPC shares at $29.98.

As previously reported, Validus believes its offer for IPC is superior to the Max proposal and said it will solicit votes against the deal.

"IPC remains committed to completing our transaction with Max, which we believe will create a more diversified and balanced platform for growth and shareholder value creation," IPC chairman Kenneth L. Hammond said in a news release.

Based in Hamilton, Bermuda, Validus provides insurance coverage and reinsurance coverage in the property, marine and specialty lines markets.

IPC, located in Pembroke, Bermuda, provides property catastrophe reinsurance as well as aviation, property-per-risk excess and other short-tail reinsurance.

Specialty insurance and reinsurance provider Max is based in Hamilton, Bermuda.

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