Conseco Insurance (CNO) Message Board

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Non-Tech : Conseco Insurance (CNO)

CNO 42.05

+0.6%

3:59 PM EST

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To: John Thomas who wrote (400)	11/20/1997 1:42:00 PM
From: M.A. Miller	Read Replies (3) of 4155

John: From the SEC filings of the 18th of Nov, looks like CNC is going to issue up to $1,000,000 of debt or prides to replace existing debt, perhaps to give better interest rates. They can't borrow more for acquisitions because they would exceed the 35% debt to capital limit they have promised the rating agencies they would maintain. Therefore, future acquisitions would appear to have to be stock. This would allow pooling of interest which is more favorable to earnings (no amortization of goodwill). Remember, last year CNC asked to increase authorized shares from 500 million to 1 billion. Currently only 200 million outstanding. I read that to allow for a stock split and several acquisitions. I think CNC is looking right now to acquire, as you said. Interest rates are low, but I'm sure they want they're stock up to $50 or so before doing a deal. Waiting with excitement. Any input you can add?

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