You would have heard an announcement by now. I don't think anyone's interested. Not because it's a bad buy, but something tells me that HIG may be upset over Paulson pushing them into this. So therefore, there's a chance that they may be asking full blown retail price, and in this economy, with strict credit markets, they may not be able to pull it off.
Hey enoughlib.....Did you catch my name? I retired in 2004. Got the rules of 70, 80, even 90. No complaints about ITT stock or HIG stock over the past 40 years. Did OK and don't regret leaving my 401k right there. Lots of great investment options. Still able to move in and out of HIG whenever I want as well. Confident we'll be back to decent presence in the PC market.
One of the reasons why there hasn't been much talk of a buyer is because the "first round" is just a bunch of other carriers signing the "non disclosure" clause. This allows them to look at HIG's books, and from there determine if it's a good deal for them or not. This process takes at least a month or 2. During this time, it's like an open house. People come in, lok around, and see if they like what they see. From there, the potential buyers schedule meetings with HIG management for a more in depth look. At that time, it's really up to HIG and the potential buyers if they want to release info or not. After that phase, it goes into the bid and negotiation phase. Which is about another month or 2. So to not have any info for a while is normal. But if a company doesn't release ANY info about ANYTHING within 2 months, it either means that nobody's interested, or the parties involved don't wan't to disclose the info.
If HIG sold some of their divisions don't you think that it would be for the good of the company(increase in profits) and the stockholders? I would look for an increase in their stock price if part of their businesses were sold.
Maybe. It depends upon many variables. What is being sold? How much? How is the debt being handled? Terms/conditions, etc. If you isolate the P&C business, you might justify a multiple expansion approaching some of the best in breed. The key would be what would the book value of the businesses they're keeping and how do investors and wall street feel about Hartford's management team. Based on what we've seem under Liam's tenure, there's doesn't appear to be a lot of confidence in Hartford. Hartford has announced multiple plans then changed them, caved into a large shareholder's pressure, outsourced many jobs which has negatively impacted execution on plans and employee morale, and our executives aren't highly regarded based upon what I've experienced and what I've been told.
Ask yourself this question putting aside the price of the stock for discussion purposes. How does The Hartford compare to the Travelers, AIG, Liberty and Chubb? I think you get the point.
That HIG is trading close to 1/3 of book indicates rather clearly that the company has "issues". This would not be a simple transaction for any acquirer and there is significant risk associated with the transaction and post-close operations.
Basically, I'd be very surprised if a potential acquirer would have an interest given those risks. Even "straightforward & simple" insurance company mergers/acquisitions are difficult; this one is just too complex, potentially fatal for the acquirer, to be worth the effort. IMHO.