The long nightmare that is Tower Group (TWGP) now has an end in sight. Assuming that a sufficient number of Tower shareholders approve, and that the company doesn't go insolvent before the deal closes, Tower will be selling itself to ACP Re, a privately-held insurance company controlled by the founder of AmTrust Financial Services (AFSI). As huge reserve charges had severely depleted the company's capital and led to downgrades that essentially excluded it from the market, I believe this is the best outcome that shareholders could reasonably ask for or expect.
Assuming that the deal goes through as announced, ACP Re will be acquiring Tower Group for $3 per share or...
Only subscribers can access this article, which is part of the PRO research library covering 3,604 different stocks.
Growing numbers of fund managers and other investment professionals subscribe to Seeking Alpha PRO for equity research that is unavailable elsewhere, so they can: