Twentieth Century Industries (Insurance) TW Message Board

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Non-Tech : Twentieth Century Industries (Insurance) TW

TW 107.80

+0.5%

Dec 26 9:30 AM EST

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To: Carey Thompson who wrote (38)	5/20/2007 1:57:31 PM
From: Carey Thompson	of 39

Say good bye to TW; AIG Acquires Remaining Shares of Auto Insurer Tuesday May 15, 5:18 pm ET By the BullMarket.com Staff After upping its original offer, American International Group (NYSE: AIG - News) has entered into a definitive agreement to acquire the remaining shares of 21st Century Insurance Group (NYSE: TW - News). AIG will pay $22 a share in cash, or about $813 million, to acquire the approximately 39% of 21st Century that it doesn't already own. The higher bid comes after AIG offered $19.75 per share for the auto insurer in January. The new offer is a 4.8% premium to Monday's closing price. The deal, which is expected to close in Q3, bolsters AIG's exposure to the direct-to-consumer auto insurance market, particularly in California, though 21st Century has a presence in 60% of the U.S. market. 21st Century also dovetails -- and in some cases has competed -- with the three other auto insurance businesses that AIG already owns. Because 21st Century's results are already partially incorporated into AIG's financials, the added ownership won't have a big impact AIG's bottom line. However, AIG is likely to benefit from past strategic initiatives that are now paying off for 21st Century. With AIG's purchase coming at a reasonable price, this deal will be a small but worthwhile pick-up for the firm. AIG is a Bull Market Report Recommended List stock. No member of the Bull Market Report editorial staff contributing to this article has any long or short positions in any company mentioned. Indie Research has a disclosure policy.

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