CNA Surety Corporation announced today that it has received a proposal from CNA Financial Corporation to acquire all of the outstanding shares of common stock of CNA Surety that are not currently owned by subsidiaries of CNA for $22.00 per share in cash. CNA, through its subsidiaries, currently owns approximately 62% of the outstanding shares of CNA Surety common stock.
The proposal states that CNA intends to implement the transaction in a manner that will ensure that CNA Surety would become a wholly-owned subsidiary of CNA and that all CNA Surety stockholders would receive the same consideration for their shares.
CNA Surety's board of directors has formed a special committee consisting of the company's three independent directors. This special committee will retain independent financial and legal advisors to consider the proposal.
"Once their financial and legal advisors are selected, the special committee of the board of directors will review this proposal and will make recommendations in the best interest of our stockholders," said John Welch, president and chief executive officer of CNA Surety. "While this offer initiates a process that will unfold over a period of time, we want to assure all of our agents and clients that business will continue as usual, and we expect there to be no change in the service levels we provide."
About CNA Surety
CNA Surety Corporation is the largest publicly traded surety company in the country. Through its principal subsidiary, Western Surety Company, CNA Surety provides surety and fidelity bonds in all 50 states through a combined network of approximately 37,000 independent agencies. The Company's Securities and Exchange Commission ("SEC") filings are available at http://www.sec.gov/ or visit us at http://www.cnasurety.com/ for a direct link to the SEC website.