Texas- based Biglari Holdings, which runs Steak n Shake and other restaurants, is making another bid for the Michigan property/casualty insurer, Fremont Michigan InsuraCorp. Inc.
The San Antonio holding company has proposed to acquire 100 percent of the stock of Fremont Michigan that it does not already own for $29 per share in cash. The company said the purchase price represents a 41 percent premium over the closing price of Fremont’s common stock on Oct. 11, 2010.
Last December, Fremont Michigan board of directors rejected an unsolicited proposal from Biglari seeking to acquire control of the company.
In April, lawmakers passed and Gov. Jennifer Granhom signed legislation written specifically to make it more difficult for Biglari to take over the insurer. The legislation requires that a perceived hostile takeover of a small insurer be approved by two-thirds of the shareholders of the targeted company, rather than by a simple majority.
Lawmakers have been concerned that Biglari would move the insurer’s 75 employees out of the state while Biglari has said it has no plans to do that.
Topics Legislation Michigan
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