Capital Calls: Chubb and Hartford



(The author is a Reuters Breakingviews columnist. The opinions expressed are their own.)

NEW YORK (Reuters Breakingviews) - Concise insights on global finance.


OVER-INSURED. Chubb Chief Executive Evan Greenberg went back to rival Hartford Financial Services two more times after an initial unsolicited offer of $65 per share in March. Harford said on Thursday it had rejected those offers too – at $67 and $70 a share – and suggested it is worth more.

Breakingviews reckons synergies from a merger might be worth around $7 billion. That means in theory they could justify a premium of about $20 per Hartford share. So far, Chubb’s best offer is about $15 above Hartford’s undisturbed value, nearly a 30% premium. 

On that simple math, Chubb has room to go to around $75. The $74 billion company has said, however, that it will be disciplined and investors have sent its shares down around 5% since March. And some analysts peg Hartford’s worth at $80 per share or more. In a conservative industry, Greenberg is already out on a limb making an unsolicited bid. It might be a step too far to bridge the gap. (By Jennifer Saba)

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Earlier in Capital Calls:

Private pools boom

The less flashy end of green investing

American Airlines lightens the losses

Europe IPOs get a qualified tech boost

Canberra looks game for more brawling with Beijing

(SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS:; | Editing by Richard Beales and Amanda Gomez)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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