ACE was up today as was XL. Now XL was up even with a ratings downgrade so must be on sale talk. ACE file a mixed shelf today. So here is my speculation, ACE is going to buy XL and issue common to do so. The price will be close to today's price, and ACE will take a huge mark on the investment securities, so Xl's book value will be written down to pretty much nothing. They get XL's platform some good teams, and very large cost savings, and take out a major competitor. If the securities are not that bad, and they should not be, they get upside on the securities, as the majority of those should come back. They can issue equity above book, so this deal will be accretive on book, and massively accretive on earnings.
You heard it here first! or maybe this is the talk of the town, but i am cut off, sorry.
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