Insurance broker E.W. Blanch Holdings Inc. is exploring strategic alternatives with its financial adviser Lazard, including a sale of the company, Reuters news service reported today. The move comes after the company reported a loss for the third quarter.
“We are taking difficult actions to address contingencies and past issues to position the company for long-term growth and profitability,” Chief Executive Ted Blanch said in a prepared statement. E.W. Blanch, which has seen its share price fall 65 percent since March, also said it was launching a cost saving plan, which will involve selling unprofitable or inessential businesses, Reuters reported.
The firm said this could result in a restructuring charge in the fourth quarter. Blanch said these initiatives were in response to an updated revenue projection of approximately $216 million for 2000. The company expects to achieve profitability of 15 cents per share for 2000, excluding any potential restructuring charge.
E.W. Blanch’s net loss for the third quarter, including special charges to cover writing down some assets and returning some revenue on a renegotiated contract, was $8.8 million, or 69 cents per share. In the same quarter 1999, the company saw a profit of $10.8 million, or 78 cents per share.
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