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Scor and Covéa sign settlement agreement

This comes after a bitter takeover attempt and ongoing legal disputes

Scor and Covéa have announced the signing of a settlement agreement between the two organisations.

Covéa, the top shareholder of Scor, has agreed to exit the firm as the insurance groups eventually reached a settlement after a failed takeover attempt and ongoing legal disputes.

In January 2019, Covéa backed out of plans to purchase Scor after an immense pushback from the reinsurer.

As part of the settlement, Covéa agreed to provide Scor a call option on its shares at an exercise price of €28 (£24) per share for five years, while it also agreed not to buy shares in Scor over the next seven years.

Furthermore, Covéa is set to pay the reinsurer €20m (£17m) before tax and both groups are not continuing with any legal action against the other.

Yesterday (10 June), when the deal was announced, Scor shares closed at €26.1 (£24.2).

In a statement, the companies said: “Covéa and SCOR wish to restore peaceful relations, based on professionalism and in keeping with their respective independence.

“These two major players in the insurance and reinsurance industry in France have decided to renew the relationship based on trust and mutual support that they enjoyed for many years.”

 

 

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