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Cendant raises ABI bid
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March 16, 1998: 6:55 p.m. ET
Offer of $67 per share, or $3.1 billion, for American Bankers tops rival AIG
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NEW YORK (CNNfn) - The stakes were raised Monday in the bidding for American Bankers Insurance Group when Cendant Corp. upped its offer to $67 a share, or $3.1 billion.
The new Cendant bid tops a rival offer of $58 a share, or $2.7 billion, from insurance company American International Group Inc.
Both companies have been battling it out for the Miami-based ABI, which is a direct-marketer of credit-related insurance. In
In December, American Insurance (AIG) and ABI (ABI) announced a $2.1 billion agreement, leading Cendant to step into the fray.
ABI was not immediately available for comment, but AIG said in a statement that it was reviewing its options in light of the new Cendant bid and would make an announcement in due course.
In order to entice ABI to accept its offer, Cendant (CD), a consumer services company, agreed in early February to pay the $66 million breakup fee American Bankers would be required to pay AIG for leaving the merger.
Cendant, which was formed late last year by the merger of CUC International and HFS Inc., said Monday it will buy 23.5 million shares of American Bankers in a cash tender offer due to expire at midnight March 27.
"We continue to expect the acquisition to be accretive in 1998, even at this new price," said Cendant Chairman Walter Forbes in a statement. 
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