Max Cap, Validus, IPC Skirmishes; AIG IPO; Pirates Continue Attacks

As the June 12 shareholders meeting approaches, the three-way tussle between Bermuda-based Validus Holdings and the Max Capital Group over the acquisition of IPC Re shows no signs of letting up.

In the latest round Validus lost its bid to expedite its suit against Max and IPC when the Bermuda Supreme Court dismissed its application, and ordered the company to pay IPC’s and Max’s court costs and legal fees.

Validus is seeking to void the $50 million termination fee and “no-talk” provision contained in the IPC-Max Amalgamation Agreement. It pointed out that the decision “only related to the timetable for the proceedings and was not a judgment on the merits of Validus’ claims. The judge acknowledged that Validus has raised ‘serious questions to be tried.'”

Validus also noted that the “court’s ruling has no effect on Validus’ resolve to complete its acquisition of IPC, including the Exchange Offer we announced on May 12, 2009, and the Scheme of Arrangement, neither of which is conditioned on the elimination of the possible termination fee to Max.”

Validus nonetheless upped its offer to IPC’s shareholders to $1.69 billion. IPC’s board promptly rejected the offer, and urged its shareholders to do the same.

IG finally launched its long rumored initial public offering (IPO) of its Hong Kong-based subsidiary, American International Assurance Co Ltd (AIA), known as its “crown jewel.” AIA provides coverage to about 20 million customers, or close to a third of AIG’s total customer base.

AIA has more than $60 billion of assets under management, according to a report from Reuters. In 2008, it recruited more than 52,000 agents, bumping its representation up to about 250,000 agents, and it has about 20,000 employees across 13 Asian markets.

Standard & Poor’s said that it did not expect any rating change as a result of the IPO.

Somali pirates continued their attacks, but at least one of them was frustrated by the intervention of two Australian Navy warships that chased a band of pirates away from their intended target in the Gulf of Yemen.

Aon issued a statement asking the world’s Protection & Indemnity Clubs (P&I), mutual associations that provide liability coverage for most of the world’s marine transport, “to remove their war risks exclusion to give ship owners greater coverage certainty in the event of a piracy attack.”

Topics AIG