Delphi shareholders approve Tokio Marine buyout

Delphi Financial Group shareholders approve $2.7 billion acquisition by Tokio Marine Holdings

Associated Press

WILMINGTON, Del. (AP) -- Delphi Financial Group Inc. said Tuesday that its shareholders approved the acquisition of the company by Tokio Marine Holdings Inc.

The Japanese company said in December that it would buy the specialty insurance company in a roughly $2.7 billion deal as it tried to strengthen its position in the U.S. insurance market.

The deal calls for Tokio Marine to pay $43.875 for every Class A share of Delphi and $52.875 for every Class B share. Delphi stockholders will also receive $1 in cash for every share they hold, as a one-time special dividend.

Some Delphi shareholders challenged the deal because it gave Delphi founder Robert Rosenkranz a higher price for his Class B shares than public investors holding Class A shares would receive. But a judge ruled last week that he would not halt the vote.

The judge said that plaintiffs likely would succeed in arguing that Rosenkranz was not entitled to the differential, but that Delphi shareholders are still getting a premium and should be allowed to vote on the deal.

Delphi said Tuesday that based on a preliminary count, more than 99.3 percent of the votes cast by unaffiliated stockholders and 71.9 percent of the unaffiliated shares outstanding voted in favor of the deal. By measure of the total voting power of outstanding shares, more than 86.1 percent voted in favor.

The deal is expected to close by the end of June.

Delphi, based in Wilmington, Del., specializes in employee benefit services and related insurance coverage, such as life insurance, long-term and short-term disability. It also sells individual fixed annuity coverage.

Delphi shares were unchanged at $44.87 in afternoon trading.

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