|
Chubb to sell unit for $1B?
|
 |
March 11, 1997: 7:30 a.m. ET
Firm reportedly selling real-estate unit to Patriot American affiliate
|
NEW YORK (CNNfn) - Chubb Corp. has reportedly agreed to sell its real-estate unit for about $1 billion to Patriot American Management & Leasing Co.
The company, which is run by Patriot American Hospitality Inc.'s chairman and CEO Paul A. Nussbaum, would acquire Chubb's Bellemead Development Corp. unit, the Wall Street Journal reported Tuesday.
Chubb said on Friday it had found a buyer for its real-estate unit's holdings, but didn't elaborate. Patriot also had no comment.
Chubb is known mostly for selling homeowners' insurance as well as specialized-liability coverage for businesses. It had $5.7 billion in revenue last year.
Its holdings include 50 office buildings in New Jersey, Illinois, Washington, Michigan and Texas. It recently sold its life-insurance unit to Jefferson-Pilot Corp. for $875 million.
Patriot American Hospitality, which owns about 53 hotels and resorts as well as office buildings, could combine those properties with Chubb's holdings and go public as a separate real-estate investment trust, the Journal said.
Patriot American Hospitality has been on a buying spree lately, securing a California racetrack last year for $195 million and acquiring about $626 million in hotels and resorts, including Resorts L.P., Carefree Resorts Corp. and Resort Services Inc.
In Monday trading on the New York Stock Exchange Chubb rose 1-3/4 to close at 61-1/2. Patriot American Hospitality finished the session at 52-3/4, also gaining 1-3/4. 
|
|
|
|
|
|
Chubb Corp.
|
Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney
|
|
|
|
 |
|
