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AIG proposes to acquire public shares of 21st Century


January 26, 2007   by Canadian Underwriter


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American International Group, Inc. (AIG) is proposing to acquire the outstanding 38.1% publicly held shares of 21st Century Insurance Group (21st Century) (NYSE: TW) for approximately US$690 million.
“Following the transaction, 21st Century would become a wholly owned subsidiary of AIG,” according to a news release posted on AIG’s Web site.
“Our proposal represents an excellent opportunity for 21st Century’s shareholders to monetize their investment at a full and fair value for their shares,” said AIG president and CEO Martin J. Sullivan. “For AIG, this is an opportunity to make a substantial additional investment in a business we know well.”
AIG said it intends for the transaction to be implemented through a merger agreement that would be negotiated and approved by a special committee. The special committee would include directors of 21st Century who are independent of AIG.
The proposal is subject to AIG’s satisfactory completion of due diligence, satisfaction of regulatory requirements and the approval of the special committee.
AIG has advised 21st Century that it “has no interest in a disposition of its controlling equity stake in 21st Century.”
Banc of America Securities LLC and J.P. Morgan Securities Inc. are serving as AIG’s financial advisors and Sullivan & Cromwell LLP is serving as AIG’s legal advisor in the transaction.


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