Tuesday April 7, 7:51 am Eastern Time
Conseco to buy Green Tree for $7.2 billion
CARMEL, Ind., April 7 (Reuters) - Conseco Inc. (CNC - news) has agreed to acquire Green Tree Financial Corp. (GNT - news) in a stock swap valued at $7.2 billion, the companies said on Tuesday.
The agreement, approved by directors of both companies, will create a life, health and consumer finance company with a market capitalization of $20 billion, they said in a statement.
Under the agreement, each Green Tree common share will be converted into 0.9165 share of Conseco common. Green Tree stockholders will own about 38 percent of the combined company.
Green Tree shares closed at $29 on the New York Stock Exchange on Monday. Conseco closed at $57.75.
The transaction will be accounted for as a pooling of interests and is expected to be completed in the third quarter, the companies said.
In connection with the merger agreement, Green Tree has granted Conseco an option to purchase 26.7 million shares of Green Tree common at $52.93 per share. Green Tree will continue to operate from its St. Paul, Minn. headquarters. Conseco is based in Carmel, Ind.
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and News: Conseco Inc (NYSE:CNC - news)
Green Tree Financial Corp (NYSE:GNT - news)
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