AIG CHARGES CENDANT LIED IN TENDER WAR
American International Group Inc. has filed a suit in federal court accusing Cendant Corp., its rival bidder for…
American International Group Inc. has filed a suit in federal court accusing Cendant Corp., its rival bidder for American Bankers Insurance Group, of misleading American Bankers shareholders.
The suit, filed in Miami, seeks to prevent Cendant from discussing its takeover offer with American Bankers until it files registration documents with the Securities and Exchange Commission.
The complaint alleges that Cendant has “embarked upon a campaign of misinformation by disseminating numerous false and misleading statements to American Bankers’ shareholders,” in violation of federal securities laws.
For example, the complaint alleges that Cendant, a travel and real estate conglomerate based in Parsippany, N.J., and Stamford, Conn., misled shareholders because the value of its bid fluctuates with Cendant’s “volatile” stock price.
The suit also contends that Cendant’s president and CEO, Henry Silverman, made “knowingly false and misleading” statements when he told analysts that regulatory approval for the two bids was comparable. In a statement, Cendant called the suit “baseless.”
The bidding war erupted Jan 27, when Cendant announced a cash tender offer valued at $2.7 billion for 51% of American Bankers’ stock. It said it would acquire the rest later for Cendant stock.
The bid came two weeks after AIG had agreed to buy Miami-based American Bankers for $2.2 billion.
Crain news service
Learn more about reprints and licensing for this article.