A spokeswoman says Michigan Gov. Jennifer Granholm is expected to sign legislation that would make it tougher for San Antonio-based Biglari Holdings Inc. to take over a west Michigan insurance company.
The legislation given final approval on a 28-8 Senate vote Tuesday requires that a perceived hostile takeover of a small insurer be approved by two-thirds of the shareholders of the targeted company, rather than by a simple majority.
It’s a narrowly tailored bill designed to protect Fremont Michigan InsuraCorp from a takeover.
Lawmakers worry that Biglari, formerly Steak n Shake Co., would dismantle Fremont or move its 75 employees out-of-state.
Biglari says it doesn’t intend to break up or move Fremont. The company says the legislation dilutes shareholder rights.
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