EUROINS MAKES OFFER FOR TOWER GROUP

Bulgaria-based Euroins Insurance Group has offered to pay $3.75 a share to acquire troubled Bermudian re/insurer Tower Group International. Euroins said that the proposal to acquire all Tower Group shares is subject to the satisfactory completion of due diligence and execution of a written agreement. The Sofia-based company, a unit of Eurohold Group, said that it has substantial experience in managing acquisitions and is committed to working quickly to execute a definitive agreement. EIG said that it intends to recapitalize Tower Group to “industry norms and standards and to... complete such an agreement within weeks from the beginning of the due diligence period”. The offer comes just days after Tower Group and Bermudian reinsurer ACP Re amended a previous buyout agreement, reducing the per-share consideration to be received by Tower shareholders to $2.50 from $3.00. The two sides amended the deal a day after Tower Group reported that its 2013 net loss swelled to $942.6m from the year-earlier $34.2m owing to several massive reserve increases and impairment charges in the wake of its merger with Canopius Bermuda early in the year.