Cendant Extends Cash Tender Offer for American Bankers

Strategic Insights -

Cendant Corporation has extended its cash tender offer to purchase approximately 23.5 million common shares of American Bankers Insurance Group Inc. at a price of $58 per share. The offer, which commenced on January 28, 1998, and was scheduled to expire on February 25, 1998, has been extended to March 6, 1998. As of February 24, 1998, $20,950,089 shares of American Bankers' stock had been tendered to Cendant under the terms of the offer, representing approximately 50% of American Bankers' outstanding common stock.

Key Takeaways:

  • Cendant's cash tender offer aims to acquire approximately 23.5 million common shares of American Bankers Insurance Group Inc. at $58 per share.
  • The offer has been extended to March 6, 1998, from the initial expiration date of February 25, 1998.
  • As of February 24, 1998, 50% of American Bankers' outstanding common stock, totaling $20,950,089 shares, had been tendered to Cendant under the offer.
  • Cendant plans to exchange shares of its common stock with a fixed value of $58 per share for the balance of American Bankers' common stock.
  • The acquisition would give Cendant control of 51% of American Bankers' fully diluted shares.
  • The offer is a response to American Bankers' shareholder vote on a $47 per share offer from AIG.
  • Cendant believes its offer is superior and will lead to a vote against the AIG proposal.

Statistics:

  • The cash tender offer is valued at approximately $2.8 billion on a fully diluted basis.
  • The total number of shares tendered to Cendant as of February 24, 1998: 20,950,089.
  • The total number of shares constituting American Bankers' outstanding common stock: approximately 42 million.
  • The percentage of shares tendered to Cendant: 50%.

Sources:

  • Cendant Corporation
  • Press release issued by Cendant Corporation on February 26, 1998.