Bermuda reinsurer Validus Holdings Ltd. said yesterday it received "overwhelming" approval from shareholders to issue extra shares in connection with its attempted takeover of IPC Holdings Ltd.

At a special shareholders meeting yesterday, Validus gained the support of 98 percent of the shares voted at the meeting.

The company also announced that RiskMetrics Group, a proxy and corporate governance, has recommended the Validus takeover offer to IPC shareholders.

Validus chairman and chief executive officer Ed Noonan said: "The approval to issue Validus shares is an important step in positioning us to move forward with the proposed acquisition of IPC. We are pleased that Validus shareholders have evidenced their strong support for the acquisition of IPC, which would create a leading Bermuda carrier in the short-tail reinsurance and insurance market."

He added that the company would push ahead with its plans to hold a special meeting of IPC shareholders with the aim of ousting the IPC board.

"We are pleased that RiskMetrics supports our efforts to call a special meeting of IPC shareholders, which we believe will facilitate Validus' ability to provide its offer to IPC shareholders," Mr. Noonan said.

"By calling the special meeting, shareholders will send another strong message to IPC's board that they want to receive the attractive economics of the Validus offer. We urge IPC shareholders to follow RiskMetrics' recommendation and execute their GREEN requisition card today."

Following receipt of the requisitions, Validus intends to apply to the Bermuda Supreme Court to request it to order the special shareholders meeting.

The IPC board said it did not support the Validus offer and was speaking with other interested parties.