NEW YORK (TheStreet) -- Aspen Insurance Holdings (AHL) has announced its board has rejected an unsolicited offer from Endurance Specialty Holdings (ENH) for the latter to acquire the former for $47.50 a share.
"Endurance's ill-conceived proposal undervalues our company, represents a strategic mismatch, carries significant execution risk, and would result in substantial dis-synergies," said Aspen chairman Glyn Jones in a statement. "Most of the consideration to Aspen shareholders would be in a stock that would reflect these problems."
By late morning, shares of Aspen had climbed 11% to $43.70, while Endurance had fallen 1.6% to $52.97.
TheStreet Ratings team rates ENDURANCE SPECIALTY HOLDINGS as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ENDURANCE SPECIALTY HOLDINGS (ENH) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, notable return on equity and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins."