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Hartford Financial rejects Chubb’s hostile buyout bid, stock falls

Shares of Hartford Financial Services Group Inc.
HIG,
-0.58%

dropped 1.1% in premarket trading Tuesday, after the property and casualty insurer said it has rejected Chubb Ltd.’s
CB,
-1.37%

unsolicited buyout bid. Chubb’s stock rose 1.3% ahead of the open. Hartford’s stock had soared 18.7% to a 13-year high on March 18 after the company said it received a bid from Chubb that valued Hartford’s stock at $65 each, which would imply a $23.24 billion market capitalization for Hartford. On Tuesday, Hartford said entering into a discussion with Chubb regarding a merger “would not be in the best interest of the company and its shareholders.” Hartford’s has rallied 119.1% over the past 12 months through Monday and Chubb shares have run up 66.7%, while the SPDR S&P Insurance ETF
KIE,
-0.73%

has hiked up 75.8% and the S&P 500
SPX,
+0.70%

has gained 76.1%.

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