CNA Financial Corp. has proposed to acquire all of the outstanding shares of common stock of CNA Surety Corp. that are not currently owned by subsidiaries of CNA for $22.00 per share in cash.
CNA, through its subsidiaries, currently owns approximately 62 percent of the outstanding shares of Surety common stock.
The proposed transaction is consistent with CNA’s strategic objective to grow its specialty franchise.
The $22.00 per share price represents a 14 percent premium over Surety’s last closing price and a 13 percent premium to Surety’s recent 52-week high. Based on the proposed price of $22.00 per share and minority shares outstanding at September 30, 2010, the aggregate purchase price would be approximately $375 million.
CNA has also informed Surety that it is only interested in acquiring the remaining shares of Surety, and has no interest in a disposition of its controlling interest.
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