Seeking Alpha

Tower Group soars as buyout deal is amended

  • 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.
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