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ARI HOLDINGS, INC. FINDS LMI TENDER OFFER INADEQUATE

 LAWRENCEVILLE, N.J., Dec. 3 /PRNewswire/ -- ARI Holdings, Inc. (AMEX: ARI) (formerly known as American Reliance Group, Inc.) today stated that the board of directors of the company had unanimously determined that the unsolicited tender offer by LMI Insurance Company to purchase up to 40 percent of the company's common stock at a price of $3.50 per share is inadequate, from a financial point of view.
 LMI is a subsidiary of Vik Brothers Insurance, Inc. In June 1993, Vik Brothers and its affiliates purchased substantially all of the assets of the company under an Asset Purchase Agreement that provides for the company to receive post-closing payments based on premiums written prior to July 1995.
 The board recommends that the company's shareholders not accept the offer and not tender any of their shares. However, the board also recommends that each shareholder, in determining whether or not to tender shares, should consider the holder's own circumstances, including the holder's ability or willingness to hold shares until there is a clearer determination of the post-closing payments to be received by the company from the Vik Group under the Asset Purchase Agreement and until the company is able to make distributions to the shareholders or otherwise allow the shareholders to realize on the value of the company's net assets.
 The company also announced that its largest shareholder, American Reliance Insurance Company, does not intend to tender any shares pursuant to the offer. American Reliance Insurance Company owns approximately 60.8 percent of the company's outstanding shares.
 /delval/
 -0- 12/3/93
 /CONTACT: Karen S. Fulton, president of ARI Holdings, 609-895-3067/
 (ARI)


CO: ARI Holdings, Inc.; LMI Insurance Company ST: New Jersey IN: INS SU: OFR

JM-MJ -- PH001 -- 0072 12/03/93 07:00 EST
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Publication:PR Newswire
Date:Dec 3, 1993
Words:291
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