2010-03-13 9:16 AM EDT Quote data delayed 15 minutes for Nasdaq, 20 minutes for all other exchanges. Listed Closing Values do not include regular dividends.
If the merger is completed, Specialty Underwriters' Alliance shareholders will receive 0.28 shares of Tower Group common stock for each share of Specialty Underwriters' Alliance stock held.
The final exchange ratio is determined by reference to the average Tower Group stock price, which is the volume-weighted average price per share of Tower Group common stock on the NASDAQ Global Select Market for the 15 trading day window immediately preceding the fifth business day prior to the closing date, and will be fixed at 0.28 if the average Tower Group stock price is greater than or equal to $23.25 and less than or equal to $27.75. If the average Tower Group stock price is greater than $27.75, the exchange ratio will be adjusted downward to provide Specialty Underwriters' Alliance stockholders with a fixed value per share of $7.77. If the average Tower Group stock price is less than $23.25 but greater than or equal to $20.00, the exchange ratio will be adjusted upward to provide Specialty Underwriters' Alliance stockholders with a fixed value per share of $6.51. However, if the average Tower Group stock price is less than $20.00, the exchange ratio will be fixed at 0.3255, and Specialty Underwriters' Alliance will have the right, for a limited period, to terminate the merger agreement, unless Tower Group elects to add additional shares of Tower common stock to provide Specialty Underwriters' Alliance stockholders with a value per share of $6.51.
Tower Group currently pays a quarterly dividend of $0.07 per share.
MergerInvesting.com is an information service and is not a recommendation, an offer, or a solicitation of an offer to buy or sell securities. The information and data on this website are provided on an "AS IS, AS AVAILABLE" basis without warranty of any kind. MergerInvesting.com makes no guarantee as to the accuracy or completeness of this information. All information is provided for informational purposes only, and MergerInvesting.com shall not be liable for any errors or omissions, or for any action taken because of this information. At any time MergerInvesting.com's affiliates may maintain long or short positions in the securities listed in this report.