Chubb ‘disappointed’ that Hartford decided not to respond to unsolicited buyout proposals

Chubb Ltd. issued a statement Thursday regarding the unsolicited buyout proposal it made to insurer Hartford Financial Services Group Inc. , saying it was “disappointed” that Hartford has not responded to any proposals. Hartford’s stock slipped 1.0% in morning trading while Chubb’s stock gained 1.1%. On March 18, Hartford shares had soared 19% after Chubb confirmed it submitted a buyout bid of $65 a share, which valued Hartford at about $23.2 billion. Hartford said in a letter dated March 31, Chubb said it was prepared to bid “in excess of $67 a share” if Hartford would engage in “meaningful discussion and due diligence.” Hartford said Thursday that it has rejected both proposals, and determined that “entering discussions regarding a strategic transaction would not be in the best interests of the company and its shareholders.” In response, Chubb stated: Although we are disappointed, we want to repeat that our shareholders demand of us, and we demand of ourselves, that we remain a disciplined acquiror.” Hartford’s stock has rallied 36.4% year to date and Chubb shares have gained 8.4%, while the SPDR S&P Insurance ETF has climbed 14.5% and the S&P 500 has advanced 10.8%.

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