OneBeacon Targeted by Stockholder in Securities Lawsuit

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OneBeacon Insurance Group, Ltd. and the company’s board of directors have been hit with a proposed class action lawsuit over claims that the company’s proxy statement issued in relation to a proposed merger was misleading to stockholders. According to the suit, the defendants have urged stockholders to vote in support of a $1.7 billion merger between OneBeacon and Intact Financial Corporation. The plaintiff in the suit alleges that OneBeacon is “well-positioned for financial growth” and is undervalued in the merger agreement. He further argues that the proxy statement fails to disclose necessary information concerning both companies’ financial projections and details of the analyses performed by OneBeacon’s financial advisor that resulted in its support of the deal’s fairness. Additionally, the suit claims that the proxy statement omits the terms of certain non-disclosure agreements between OneBeacon and several potential buyers, which, it says, “leaves shareholders guessing whether a superior offer is precluded from the Company’s consideration.”