Insurance cos (proposed buy outs, etc. discussion) Message Board

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Non-Tech : Insurance cos (proposed buy outs, etc. discussion)

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To: QuietWon who wrote ()	12/11/1999 2:37:00 PM
From: Carey Thompson	Read Replies (1) of 55

Fremont General sells a subsidiary; helps reorganize its capital structure....refocus on property casualty insurance. In the 2 days after the sale the price shots from 5 1/4 to 7 3/16. Keep this one in your sites and I will post more as time permits. dailynews.yahoo.com Finova to Buy Fremont Financial NEW YORK (Reuters) - U.S. business financial services firm The Finova Group Inc. (NYSE:FNV - news) said on Wednesday it agreed to buy Fremont Financial Corp., the commercial lending subsidiary of insurance group Fremont General Corp. (NYSE:FMT - news), for $765 million in cash, including debt. Finova President Matt Breyne said the acquisition would immediately enhance Finova's growth and profitability and be accretive to 2000 earnings. Fremont General President Louis Rampino said the deal showed Fremont's ``commitment to narrowing our focus on our core businesses'. Fremont General signaled a likely sale of its commercial finance subsidiary in its third-quarter earnings, where it reported a net loss of $85 million, largely due to underwriting losses on workers compensation business. Rating agency Standard & Poor's put the company's ratings on watch in November with negative implications over the company's capital adequacy. Fremont's shares have declined this year to around $5 from around $24 a year ago, closing at 5-3/16 on Tuesday, while Finova shares closed at 35-7/16. Fremont General said the acquisition should be completed before the end of the year. The debt portion of the deal includes the assumption and the refinancing of existing debt.

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