NYSE MAY DELIST 2 INSURERS

The New York Stock Exchange announced Dec. 5 that it plans to suspend trading in the common stock and other NYSE-listed securities of Reliance Group Holdings Inc. and will move to delist the issues from the exchange. It is taking the action because of Reliance common stock’s abnormally low selling price, which closed Dec. 4 at 1/32, matching a 52-week low. The troubled insurer is also in violation of other listing criteria. NYSE also announced its plan to delist the shares of Frontier Insurance Group Inc. The liability and medical malpractice insurer has fallen below the NYSE listing standards requiring companies to have a market value of not less than $50 million and maintain a share price greater than $1. Frontier’s share price plummeted from a high of $38.75 in October 1997 to less than $1 in June where it has remained. A review of the decision will be held by a committee of NYSE board directors and should be completed near the end of January. In the meantime, Frontier shares will continue to trade on the NYSE.

Topics Carriers