Condor Services Inc. and Amwest Insurance Group Inc. announce merger.EL SEGUNDO El Segundo (ĕl sēgŭn`dō), industrial city (1990 pop. 15,223), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1917. Its products include navigation and computer systems, aircraft parts, office machines, telephone apparatus, and , Calif.--(BUSINESS WIRE)--Dec. 1, 1995--Condor Services Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :COND) and Amwest Insurance Group Inc. (ASE/PSE:AMW AMW America's Most Wanted (TV show) AMW Air Mobility Wing AMW Amphibious Warfare AMW Ask Me Why (Beatles song) AMW Angewandte Medienwissenschaft (German: Applied Media Studies) ) Friday jointly announced that they have entered into a definitive agreement for the merger of Condor into Amwest. The agreement provides for a stock-for-stock merger providing for the exchange of each outstanding share of Condor common stock for 0.5 shares of Amwest common stock. The exchange rate is subject to adjustment if the average daily closing price per share of Amwest common stock for the 30 consecutive trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. prior to closing is less than $12.50 or more than $17.50 per share. The merger, which is intended to qualify as a tax-free transaction, is subject to regulatory approval and other customary conditions, as well as the approval of both Amwest's and Condor's stockholders. The merger transaction is scheduled to be completed during the first quarter of 1996. Based on Thursday's closing price for Amwest common stock, the merger has a total equity value of approximately $17 million. Richard Savage Richard Savage (c. 1697 – August 1, 1743) was an English poet. He is best known as the subject of Samuel Johnson's Life of Savage (1744), one of the most elaborate of Johnson's Lives of the English Poets. , chairman of the board and co-chief executive officer of Amwest, stated, "The addition of Condor to the Amwest Group represents an excellent opportunity for us to expand our services beyond the surety market and is an important strategic step for both companies. "For Amwest, this merger will reduce the company's reliance on the public construction markets and allow us to pursue more diverse opportunities in the property/casualty business through a tightly focused company specializing in commercial and private passenger transportation programs. "For Condor, the merger will help provide sufficient capital and corporate infrastructure to expand its programs more rapidly than would have been possible as a separate entity." Condor Chairman Guy Main stated: "We are delighted with the transaction. We believe that the combination of Amwest and Condor is in the best interests of our stockholders, employees and customers. Surplus constraints and the additional costs of being a public company have reduced our ability to expand our transportation programs beyond our current customer base. "We believe that Amwest's additional resources will allow Condor to profitably increase our underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. capacity in the future. Further, I am personally excited about joining the Amwest Group and look forward to working with the Amwest team to help us achieve superior results in the years to come." After the merger, Amwest's board and executive officers will continue to serve in the same capacities for the combined company. Main will join Amwest as an executive vice president, member of the Amwest board, and will continue to serve Condor Insurance Co. as its president. Amwest is a Woodland Hills, Calif.-based insurance holding company specializing in surety bonds surety bond An insurance fee required before a duplicate security is issued to replace one that has been lost. The fee is approximately 4% of the market value of the security to be replaced. , including contract performance, court, contractors' license and sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. bonds. Condor Services is an insurance holding company which, through its two operating subsidiaries An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. , Condor Insurance Co. and Raven Claims Services Inc., provides certain property and casualty insurance coverages and services primarily to specialized segments of the trucking industry in California and Arizona and private passenger automotive coverages in Arizona. CONTACT: Condor Services Inc., El Segundo Guy A. Main, 310/640-2121, ext. 215 |
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