In early afternoon trading on Thursday, IPC shares were 2.2percent higher to $28.38. IPC, Validus and Flagstone are all based in Bermuda andsell property-catastrophe reinsurance. They typically get hitwith their biggest claims when hurricanes strike populatedareas. Hurricane season runs from June through November, withstorms generally gaining strength in the middle of the season. IPC was formed after 1992’s Hurricane Andrew wreaked havocin Florida, leading to a severe contraction in reinsurancecapacity in the state.

Validus and Flagstone were both formedafter 2005’s Hurricane Katrina, which devastated the U.S GulfCoast and caused a similar dearth of coverage Validus hasgrown more quickly. Reinsurers assume risks from other insurers, basicallyspreading the risk of loss among several carriers. The company is also considering other strategicalternatives that might not involve a sale, and has not ruledout delaying the sale process until after hurricane season ispast. A Flagstone representative was not immediately availablefor comment. IPC said on Thursday that its board was in discussions withseveral parties, including Validus and Flagstone. Joshua Shanker, an analyst with Citigroup, in a researchnote said IPC was likely to be cool to new suitor Flagstone. “Frankly, we believe that IPC would not want to be acquiredby Flagstone,” citing its view of Validus, which has a broaderbusiness profile than Flagstone.

IPC Chairman Kenneth Hammond said in a May interview withReuters that he and the board had concluded that Validus wasnot a good match. IPC had sought the tie-up with Max to to diversify itsbusiness, and said the company’s nearly decade-long historymade it a more stable choice than Validus, which is not yet 4years old. Validus’ stock and cash offer amounts to $28.86 per IPCshare, or $1.61 billion, based on Wednesday’s closing price forValidus. Late Wednesday, Flagstone offered its own stock and cashoffer equal to $33.62 per IPC share, or $1.88 billion, based onWednesday’s closing price for Flagstone. But Flagstone sharesdropped more than 12 percent in morning trading on Thursday,cutting the value of its offer. Validus and Flagstone are in hot pursuit of IPC after anIPC merger with Max Capital (MXGL.O), which had the fullsupport of the companies’ boards, failed to win IPC shareholdersupport last month Validus’ unsolicited offer had sought toderail the Max deal. IPC is an attractive target because it would increase theacquirer’s capacity to sell property-catastrophe reinsurancejust as rates for the coverage are rising.

* Validus offer not raised in face of rival Flagstone bid Stocks  |  Mergers & Acquisitions * IPC shares up 2.2 pct; Validus up 0.2 pct * Flagstone shares down more than 12 percent (Recasts lead, adds analyst comment, updates share prices) By Lilla Zuill NEW YORK, July 2 (Reuters) – Reinsurer Validus Holdings Ltd(VR.N) reiterated its unsolicited offer for rival IPC HoldingsLtd IPCR.O on Thursday despite a competing bid from FlagstoneReinsurance Ltd (FSR.N). Officials said Biden might meet up with his son, Beau Biden, who is in Iraq with the Delaware National Guard in a unit that was activated for deployment late last year.(Editing by Frances Kerry) France France. “This is a moment when we have to make sure that the Iraqis don’t take their eye off the ultimate prize,” Biden said. White House officials said Biden would meet President Jalal Talabani and Prime Minister Nuri al-Maliki as well as visit U.S commanders and troops, marking the U.S July 4 Independence Day holiday Obama visited Iraq in April. military commanders and troops, said he was optimistic about Iraq’s future but much work remained. Biden’s three-day visit comes after President Barack Obama appointed him to help coordinate Iraq policy as U.S officials lay the groundwork for a full withdrawal of U.S forces by 2012.