NEW YORK, May 26 /PRNewswire/ -- Alleghany Corporation (NYSE: Y)
announced today that the record date for the previously announced spin-off of
Chicago Title Corporation ("Chicago Title"), a newly formed holding company
for Chicago Title and Trust Company, will be June 10, 1998.
The spin-off (the "Spin-Off") will be accomplished through a distribution
of three shares of Chicago Title common stock for each share of Alleghany
common stock outstanding on the record date. Alleghany stockholders of record
will not be required to pay for any shares of Chicago Title common stock
distributed to them or to take any action to receive such shares of Chicago
Title common stock. The effective date of the Spin-Off will be June 17,
1998. The Internal Revenue Service has ruled that the Spin-Off will be tax-
free to Alleghany stockholders and to Alleghany.
It is anticipated that the Chicago Title common stock to be distributed in
the Spin-Off will commence "when issued" trading on the New York Stock
Exchange under the symbol "CTZ" on Monday, June 8, 1998.
Further details concerning the Spin-Off will be provided to Alleghany
stockholders in an information statement to be distributed to Alleghany
stockholders prior to the effective date of the Spin-Off.
Chicago Title is one of the nation's largest providers of title insurance
and other related services for residential and commercial real estate
transactions. Chicago Title currently has more than 300 full service offices
and 3,800 policy issuing agents in 49 states, Puerto Rico, the Virgin Islands,
Guam and Canada.
After the Spin-Off, Alleghany will continue to engage in the property and
casualty reinsurance and insurance, industrial minerals and financial services
businesses conducted by its subsidiaries Underwriters Re Group, Inc., World
Minerals Inc. and Alleghany Asset Management, Inc. Alleghany will also
continue to operate a steel fastener importing and distribution business
through its Heads and Threads division.
Alleghany beneficially owns approximately 7.43 million shares, or
4.7 percent, of Burlington Northern Santa Fe Corporation, which owns one of
the largest railroad networks in North America, with 34,000 route miles
covering 28 states and two Canadian provinces.
SOURCE Alleghany Corporation
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fax, 800-758-5804, ext. 117465
CONTACT:
R.M. Hart of Alleghany Corporation,
212-752-1356
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