Largest Funeral Home Company Makes Bid for Canadian Rival

In a business where people are supposed to be soothing and supportive, the world’s biggest funeral-home company on Tuesday made what was viewed as an unfriendly, expensive bid for even more power.

Service Corp. International, the Houston-based owner of more than 2,800 funeral homes worldwide, disclosed it had approached Canada’s Loewen Group, its rapidly expanding rival, with a proposed takeover valued at just over $2 billion.

If the buyout attempt is successful, it would create a company with about 3,750 funeral homes and 600 cemeteries worldwide.

Loewen said only that it would review the offer, which values its shares at $43 each--a big premium over their recent price. Shareholders responded by boosting Loewen’s shares $6.25 higher, or by 18.5%, to $40 on Nasdaq.

Service Corp. sought talks with Loewen but did not say it was ready to take the bid directly to shareholders if it is rebuffed by management. Its executives did not return telephone calls seeking comment. Shares of Service Corp. slipped 12.5 cents to close at $30.125 on the New York Stock Exchange.