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| HCC Insurance Withdraws Offer for The Centris Group |
HCC Cites Centris' Board's Refusal to Discuss Offer Before Rejection
HOUSTON, Jan. 27 /PRNewswire/ -- HCC Insurance Holdings, Inc. (NYSE: HCC)
today said that it has unconditionally withdrawn its offer to acquire The
Centris Group, Inc. (NYSE: CGE) for $13.25 per share in cash. HCC currently
owns 7.79% of the Common Stock of Centris.
HCC decided to withdraw its offer after today's announcement by Centris
that its Board of Directors unilaterally had rejected HCC's bid without any
meetings, discussions or negotiations with HCC about the proposal. When HCC's
offer was made on January 11, 1999, it represented a 40% premium over the
average closing Centris price for the previous 20 trading days and a
34% premium over the average closing Centris price for the previous six months
trading. In addition, HCC's offer was not subject to any due diligence
condition or financing contingencies.
Stephen L.Way, Chairman and Chief Executive Officer of HCC said, "We are
extremely disappointed with the decision by the Centris Board especially since
we left the door open for a higher price subject to due diligence. We believe
that our offer was full and fair, and presented exceptional value for Centris'
shareholders, who must be extremely disappointed by this action."
HCC is an international insurance holding company with assets exceeding
$1.5 billion and whose shares are traded on the NYSE with a market
capitalization of over $1 billion. Operations consist of insurance companies
rated A+ (SUPERIOR) by A.M. Best Company, underwriting agencies,
intermediaries and insurance-related service companies specializing in
aviation, marine, offshore energy, property, workers' compensation, accident
and health insurance and reinsurance worldwide, with total premiums written
exceeding $1.2 billion.
Shareholders and others are cautioned this announcement may contain
forward-looking statements and that all forward-looking statements involve
risks and uncertainties, including without limitation, statements about the
consummation of a proposed business combination. Although HCC believes that
the assumptions underlying the forward-looking statements contained herein are
reasonable, any of the assumptions could be inaccurate and there can,
therefore, be no assurance that the forward-looking statements included herein
will prove accurate. Because of the significant uncertainties inherent in the
forward-looking statements contained herein, the inclusion of such information
should not be regarded as a representation by HCC or any other person that the
objectives and plans of HCC will be achieved.
SOURCE HCC Insurance Holdings, Inc.
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CONTACT:
Thomas C. Franco or Mark Kollar, both of
Broadgate Consultants, Inc., 212-232-2222, for HCC Holdings, Inc.
