On 12 June 2009, Max Capital Group Limited (Max Capital) announced that its merger agreement with IPC Holdings Limited (IPC Holdings) had been terminated as the offer did not obtain shareholder approval at IPC Holdings AGM held on the same day. Following the termination of the proposed merger, from which we saw significant prospective benefits for the company, we downgrade the Max Capital NASDAQ common stock from a BUY to a HOLD....

Max Capital Group Ltd.'s (Max Capital) 1Q 09 adjusted revenues and net income exceeded our expectations. Considering the 1Q 09 performance we expect to increase our estimates. Moreover, we believe that the pending merger with IPC Holdings Ltd. (IPC Holdings) is particularly beneficial for Max Capital, with strong fundamentals significantly boosting the company's position. Therefore we maintain our BUY rating for the NASDAQ common stock....

On 07 April 2009, IPC Holdings Limited’s (IPC Holdings) Board of Directors released a statement unanimously recommending that shareholders approve the merger with Max Capital Group Ltd. (Max Capital), arguing that the unsolicited bid by Validus Holdings Ltd. (Validus) did not constitute a “superior offer”. We have taken a positive stance on the prospective benefits arising from the merger with IPC…