Farmers Inc. Target for Takeover

BATUS Inc. launched a $4.5-billion tender offer today for all outstanding shares of common stock of Farmers Group Inc., the nation’s third-largest home and auto insurer.

The offer for Los Angeles-based Farmers Group is scheduled to expire March 30 but is expected to be extended until regulatory approval is obtained, said BATUS, the Louisville-based U.S. subsidiary of BAT Industries of London. BATUS decided to take its proposal directly to Farmers’ shareholders because its board “has regrettably refused to talk to us so far,” said Patrick Sheehy, chairman of BATUS.