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Tower Group International, L.Ş. Message Board

  • combined_ratio combined_ratio Jun 25, 2014 5:39 PM Flag

    Will Karfunkels Squeeze TWGP at Closing?

    IMO, the Karfunkels will try to renegotiate a reduced price for this entity before closing this transaction. There are no other buyers for Tower and why should they pay such a large premium to its value, assuming it has any value at all. These are smart people and I stronger suspect they will take advantage of their superior bargaining position.

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    • They should. I suspect they will but not simply because they have them over a barrel. They should do it because this gets worse every time they say of do something. No wonder they are slower than molasses in winter. Actually, the longer management of Tower can drag this out, don't you think the longer management gets to keep their high paying jobs? After all, the company is going down anyway.

      • 1 Reply to hearnthar
      • The debt coming due is a huge gating issue for Tower; they can't pay it, cannot renegotiate it and are totally at AFSI's mercy for it getting paid. The regulators are very interested in ensuring that the payment is made given the consequences if not. I do agree that this has been a windfall for management, who otherwise would've been long gone.

        I still do not understand the attraction to buy this business; as time goes on, as mentioned above, whatever "attraction" there was should be turning to "revulsion". A C+ rated company with a 188% combined and getting worse ain't no place to be.

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