After three unsuccessful attempt by Chubb to acquire The Hartford, Chubb is staying “disciplined”.
The last bid valued Hartford Financial Services Group at $25 billion. A valuation below The Hartford estimates.
The Hartford has reported that the 3 offers were pinned at $65 a share, $67 a share and the latest at $70 a share. The Hartford, and other analysts, believe it is worth at least $80 a share. Having no pressure to be acquired, it is believed that the Connecticut based insurer will continue to decline any offer below that amount. The high threshold might be a barrier to Chubb as it targets a more advantageous number. In a brief statement, Chubb is quoted as saying “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.”
The acquisition would have allowed Chubb to further compete in the lucrative small business insurance business and would have been one of the largest in the industry.