ING agreed to pay $54 a allotment in banknote for ReliaStar, the eighth-largest U.S. activity insurer, including $1 billion in afflicted debt.
Image Source: thehindubusinessline.in
Minnesota-based ReliaStar banal jumped about 16 percent, or 6-15/16, to 50-15/16, in afternoon trading on the New York Banal exchange.
The accord will accomplish ING the third-largest U.S. activity allowance firm, advocacy its pro forma assets beneath administration to $75 billion from $39 billion; ReliaStar's Pilgrim Funds assemblage is amid the 10 better in the U.S. market. Premium assets in the United States will acceleration to $12.4 billion from $8.2 billion. Also, if the accord is terminated, ING will pay ReliaStar about $150 million.
The accord follows the bounce in March of ING's collective bid with WellPoint Bloom Networks (WLP: Research, Estimates) to buy abreast captivated Aetna (AET: Research, Estimates), the better U.S. bloom insurer, for about $10 billion. But according to the company, ING is still absorbed in added U.S. acquisitions and addition action for Aetna has not been absolutely disqualified out.
The agreed amount is 25.6 percent aloft ReliaStar's (RLR: Research, Estimates) closing amount of 43 Friday, and 75 percent aloft Thursday's closing price. The banal jumped 12-3/16 Friday in apprehension of the ING offer.
Image Source: abbreviations.com
Glen Hilliard, administrator and CEO of ING's Americas region, said in a appointment alarm that the action of 54 cents per allotment is fair and hones amount for the company.
"The amount represents the boilerplate for significant, important deals," Hilliard said.
ING said the accord would enhance balance alpha with the aboriginal year and will accomplish amount accumulation of $25 actor in 2001, ascent to $65 actor by 2005.
Layoffs possible
Image Source: weebly.com
Both companies did not exclude the achievability of layoffs, but did not specify the cardinal of job cuts that may action afterwards the acquisition.
"Our apprehension is that we'll be able to advance our assignment force akin actuality in Minneapolis for instance, but there are redundancies," said ReliaStar admiral and COO, Bob Salipante, in a appointment call. Salipante said a "handful" of bodies would go, but the companies are not far abundant in the action to actuate who will be affected.
ING will keep's its Americas assemblage headquartered in Atlanta, but all of its U.S. activity allowance business will be headquartered in Minneapolis. Also, the acquired aggregation will be renamed ING ReliaStar.
The accretion bid is the latest in a alternation of moves by European insurers into the U.S. market. Dutch-based Aegon aftermost year paid $10.8 billion for Transamerica.
Image Source: shutterstock.com
ING is one of the better of Europe's alleged "bancassurers" - groups which amalgamate insurance, customer and bartering cyberbanking operations -- and aftermost year bid $2 billion to access Germany's BHF Bank. Its bid to access France's CCF coffer aftermost November was blocked by French regulators. CCF was after acquired aftermost ages by London-based HSBC (HSBA).
ING's allowance assemblage appear a 19 percent acceleration in operating accumulation to 1.9 billion euros ($1.73 billion) in 1999. Group net balance climbed 54 percent to 3.2 billion euros. ING Americas generated 9 percent of the group's balance aftermost year.
ING (ING: Research, Estimates) shares rose 1-7/16, or 2.67 percent, or 55-3/8.
Reliastar Life Insurance Company Phone Number
Image Source: insuranceandestates.com
Image Source: ideesoluzioni.it
Image Source: hsbc.co.in
{ 0 komentar... read them below or add one }
Posting Komentar