CNA Withdraws Proposed Cash Tender Offer for All Shares of CNA Surety.Business Editors CHICAGO--(BUSINESS WIRE)--May 26, 2000 CNA Financial CNA Financial Corporation (NYSE: CNA) is a financial corporation based in Chicago, Illinois, United States, and noted for its 600 foot tall red headquarters building there. Its principal subsidiary, Continental Casualty Company (CCC) was founded in 1897. Corporation (NYSE NYSE See: New York Stock Exchange :CNA (Certified NetWare Administrator) See Novell certification. ) announced today that Continental Casualty Company (CCC CCC A very speculative grade assigned to a debt obligation by a rating agency. Such a rating indicates default or considerable doubt that interest will be paid or principal repaid. Also called Caa. ), a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , has withdrawn its proposal to acquire by tender offer the shares of CNA Surety Corporation (NYSE:SUR Sur, Lebanon: see Tyre. ) not already owned by CCC and its affiliates. CNA described its March 20 proposal as a move consistent with the company's intention to sharpen its strategic focus on serving businesses. The $13 per share price then represented a 17.4% premium over CNA Surety's average closing price for the past 30 trading days of $11.07 per share. Based on sharply rising stock prices across the property-casualty insurance sector, CNA has determined that market conditions are no longer favorable for pursuing its previously announced intention of making a cash tender offer for shares of CNA Surety common stock. Although CNA was prepared to increase its offer, it could not reach an agreement that was both acceptable to CNA Surety and consistent with CNA's rate of return goals. CNA today informed CNA Surety of its decision not to pursue the proposed tender offer. CCC and its affiliates currently own approximately 62 percent of the outstanding shares of CNA Surety common stock. CNA Financial Corporation is a holding company whose primary subsidiaries are property-casualty and life insurance companies. Collectively, these subsidiaries are CNA, one of the largest insurance organizations in the United States. |
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