Markel Corporation Announces All-Cash Tender Offer for Gryphon Holdings

Strategic Insights -

Markel Corporation has announced an all-cash tender offer for all common shares of Gryphon Holdings at a price of $18.00 per share. The offer commences today and is scheduled to expire on December 4, 1998. Markel Vice Chairman Steven Markel believes this offer is in the best interests of Gryphon's shareholders, citing a premium of 55% over the previous price and 29% over the price before the October 1 letter. Despite previous efforts to engage in discussions, Markel is now proceeding with a tender offer after failing to achieve meaningful talks.

Key Takeaways:

  • The all-cash offer is priced at $18.00 per share, with a premium of $6.38 (55%) over the previous price and $4.00 (29%) over the price before the October 1 letter.
  • Markel has attempted numerous times to engage in good faith discussions with Gryphon since January 1998 but has failed to produce meaningful talks.
  • The tender offer is not conditioned upon Markel obtaining financing, but it is conditioned upon the redemption of Gryphon's poison pill, regulatory approval, and other customary conditions.
  • Markel is undertaking litigation in the Delaware Chancery Court to ensure that Gryphon stockholders can receive the benefits of the offer.
  • MacKenzie Partners, Inc. has been retained as the Information Agent and Cochran, Caronia Securities LLC as the Dealer Manager.
  • Markel Corporation is a market leader in specialty insurance products and programs, aiming to provide quality products and excellent customer service to build shareholder value.

Statistics:

  • The all-cash offer is priced at $18.00 per share.
  • The premium over the previous price is $6.38 (55%).
  • The premium over the price before the October 1 letter is $4.00 (29%).
  • The tender offer will expire on December 4, 1998, unless extended.
  • Gryphon's common stock is listed on the Nasdaq under the ticker symbol GRYP.
  • Markel Corporation is listed on the NYSE under the ticker symbol MKL.

Sources:

  • PRNewswire, October 20 (no specific date or publication date provided)
  • Official statements from Markel Corporation, including those made by Steven Markel, Vice Chairman.