HOUSTON, Sept. 13 /PRNewswire/ -- American General Corporation (NYSE: AGC)
today announced that it has agreed to purchase 7.25 million shares of Western
National Corporation's (NYSE: WNH) newly created class of Series A
Participating Convertible Preferred Stock. The purchase price is a total
of $130 million or $17.92 per share.
American General currently owns 40 percent of the outstanding shares of
common stock of Western National. Upon conversion of the preferred stock,
American General's ownership interest in Western National common stock will
increase to 46 percent.
This preferred issue is non-voting, convertible into Western National
common stock under certain conditions, and is designed to have substantially
the same economic characteristics as Western National common stock. In lieu
of an underwriting fee, Western National will pay American General a fee of
3.0 percent or $3.9 million at closing, which is expected to occur next week.
Western National Corporation, headquartered in Houston, has assets of
$9.3 billion and shareholders' equity of $686 million, and is the holding
company of Western National Life Insurance Company in Amarillo. Founded in
1944, Western National Life is a leading provider of retirement annuity
products. Western National common stock is listed on the NYSE and closed at
$18.25 per share on Sept. 12, 1996.
American General Corporation is one of the nation's largest diversified
financial services organizations with assets of $62 billion and shareholders'
equity of $5.5 billion. Headquartered in Houston, it is a leading provider of
retirement annuities, consumer loans, and life insurance to over eight million
households. American General common stock is listed on the New York, Pacific,
London, and Swiss stock exchanges.
SOURCE American General Corporation
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CONTACT:
Robert D. Mrlik, vice president - investor
relations, 713-831-1137, or John E. Pluhowski, director -
corporate communications, 713-831-1149, both of American General
Corporation
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