Liberty Mutual to buy Ohio Casualty
From Times Wire Services
Auto and home insurer Liberty Mutual Group will buy Ohio Casualty Corp. for $2.7 billion, the companies said, boosting the number of independent insurance agencies offering Boston-based Liberty’s products to nearly 10,000 nationwide.
Shareholders of Ohio Casualty will receive $44 a share, a premium of 32% over the Fairfield, Ohio, company’s closing stock price Friday.
The deal sparked speculation among Wall Street analysts that merger mania was finally reaching the staid insurance industry.
“Liberty Mutual’s offer is a strong one but may not beat off another big national property casualty insurer,” said Donald Light, an analyst with Celent.
Ohio Casualty shares closed up $9.85 at $43.17.
