21st Century OKs Sweetened AIG Offer

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21st Century Insurance Group has agreed to sell the rest of its outstanding shares to American International Group Inc. after AIG increased its offer to $813 million.


The revised bid, which is about 11 percent higher than the initial bid of $690 million that AIG made earlier this year, represents a 33 percent premium on 21st Century’s closing price on Jan. 24, the last trading day before AIG announced plans to buy up the remaining stake in the company.


AIG, which is the world’s largest insurer, raised its cash bid to $22 a share, from $19.75, for the remaining 39 percent of 21st Century it doesn’t already own, the New York-based insurer said in a statement Tuesday.


21st Century’s board, which had blocked AIG’s initial bid of $19.75, unanimously approved the deal.


Bruce Marlow, 21st Century’s current chief executive, will lead the combined company. The new firm, which does not have a name yet, will also include AIG’s direct auto insurer.


Shares in Woodland Hills-based 21st Century were up 73 cents, or 3.5 percent, to $21.73 in afternoon trading Tuesday on the New York Stock Exchange.

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