May 30 (Reuters) - Arca Capital, one of the largest shareholders in AmTrust Financial, on Wednesday urged other investors to vote against the U.S. insurer’s plans to go private, citing “absurdly low valuation” of $13.50 per share.
The Czech-based investment company follows activist investor Carl Icahn in opposing the proposed privatization transaction.
Icahn earlier this month filed a lawsuit against AmTrust and the family that controls the company, accusing them of trying to take the insurer private at the wrong time and at the wrong price.
Arca Capital also demanded that AmTrust Chief Executive Officer Barry Zyskind and George and Leah Karfunkel of the controlling family publicly defend the privatization plan. reut.rs/2skqbq9
On March 1, AmTrust said it would be acquired in a $2.7 billion deal by a group of shareholders including its founding family, chief executive officer and private equity funds.
Reporting By Aparajita Saxena in Bengaluru; Editing by Sriraj Kalluvila