What’s New: In Brief (June 26, 2009)

The Hartford Financial Services Group Inc. (NYSE: HIG) is receiving US$3.4 billion from the United States Department of Treasury’s Capital Purchase Program (CPP), which is investing in perpetual preferred stock of the company.
“This investment further enhances our financial flexibility and our capacity to weather significant deterioration in the equity and debt markets, as well as the general economy,” said Ramani Ayer, chairman and CEO of The Hartford. “We have recently taken a number of critical steps to set the company on a strategic course to build value for our partners, shareholders, employees and distributors.
“We are pleased that rating agencies and others have responded positively to these actions and the added financial flexibility provided by the CPP investment.”

KFS Capital LLC, an indirect, wholly-owned subsidiary of Kingsway Financial Services Inc. (KFS), has commenced a take-over bid of up to Cdn$12 million to acquire up to 1 million preferred, retractable, redeemable, cumulative units of Kingsway Linked Return of Capital Trust (KLROC) (TSX: KSP.UN).
Stilwell Value Partners IV LP is KLROC’s largest unit holder. Its affiliate, Joseph Stilwell, who is a director of KFS and chairman of the KFS Capital Committee that recommended to the board of directors the making of the offer, beneficially owns approximately 10.06% of the outstanding units.