Even at the higher offering price, Industrial Alliance Insurance and Financial Services Inc.’s bid for Clarington Corp. should be manageable, says Dominion Bond Rating Service.
DBRS notes that Industrial Alliance announced on Friday, that it has increased its offer to acquire Clarington to $15 per share from $14.25 per share. Other than this change in price, the terms of the offer remain unchanged from those announced initially on November 7, it says. The offer remains open for acceptance until December 28.
“The increase in the offer, which represents about an additional 5%, is expected to have only a modest impact on leverage and solvency ratios, and DBRS expects Industrial Alliance’s financial strength to remain favourable,” it says in response to the news. “With total capital of $1.7 billion, this transaction remains manageable for the company.”
Industrial Alliance bid for Clarington remains manageable, says DBRS
Increased offer expected to have only a modest impact on leverage and solvency ratios
- By: James Langton
- December 5, 2005 December 5, 2005
- 15:55