Money Green
Long/short equity, deep value, special situations, bonds

The Aspen-Endurance Merger Is Unattractive For Both Companies

Endurance Specialty Holdings (NYSE:ENH), a company with a market capitalization (before acquisition talks) of $2.39 billion proposed to by Aspen Insurance Holdings (NYSE:AHL) a company a with a market capitalization of $2.62 billion (before acquisition talks). The fact that Endurance is the smaller of the two may immediately make investors skeptical. Aspen soundly rejected the deal and drew up a "poison pill" to protect its company. This poison pill is set to activate as soon as somebody buys 10% of Aspen stock, and would allow current shareholders to purchase new stock at half of the market value. However, the poison pill wouldn't allow the 10%-holder to purchase new securities. This would effectively dilute the acquiring shareholder,

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details