Tower Group soars as buyout deal is amended

|About: Tower Group, Inc. (TWGP)|By:, SA News Editor

The $3 per share purchase price is reduced to $2.50 - a far smaller haircut than some panicky sellers had anticipated. The amended agreement also reduces the termination fee Tower (TWGP +32.4%) would have to pay ACP Re (a unit of AFSI) under certain circumstances.

The date by which Tower must vote on the deal and from which either party can opt out is extended to November 15, 2014.

Previously: Tower Group plummets as merger deal called into question

Kudos to SA Pro's Blue Ridge Buffettologist who urged investors to buy into the selloff of the past couple of sessions.

TWGP is currently trading at $2.25.