Suits challenge American Financial offer |
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Published
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Fri, 02 Mar 2007 22:48
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NEW YORK (AP) - Insurance holding company Great American Financial Resources Inc. said Friday that two lawsuits have been filed challenging majority owner American Financial Group Inc.'s offer to buy the 19 percent stake in Great American that it does not already own.American Financial, a property and casualty insurance company, said in last month that it offered to buy the remaining shares in Great American, its subsidiary, for $215 million.The deal would be structured so that Great American -- which is 81 percent owned by American Financial -- would pay $23.50 per share in cash to acquire the shares not owned by the parent company, using excess capital plus borrowings from American Financial to fund the deal.Great American said in a Securities and Exchange Commission filing that a suit filed Tuesday challenges the terms of the offer and also asks the court to require the company to follow certain procedures in considering the offer.The suit, which seeks class action status, names Great American and American Financial as defendants, as well the directors of the company on the day the offer was received. It seeks injunctive relief but no monetary damages.A second similar suit, which also seeks class action status, was filed Wednesday. That suit seeks both injunctive relief and monetary damages, Great American said.American Financial shares fell 26 cents to close at $34.62, while Great American shares fell 28 cents to close at $24.77, both on the New York Stock Exchange.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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