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The target called the offer “wholly inadequate.” The potential buyer said the behavior was “absolutely stunning.”
When you read the back-and-forth between the two, you can tell there's more to the story of Homeowners Choice Inc.'s offer to acquire 21st Century Holding Co.
The insurance company's offer, worth approximately $40 million in cash and Homeowners common stock (NASDAQ: HCII), was thoroughly denied by 21st Century (NASDAQ: TCHC) on Thursday.
“We believe this is simply an opportunistic attempt to acquire 21st Century's valuable licenses and portfolio and enhance Homeowners Choice's balance sheet at the expense of 21st Century's shareholders,” Chairman Bruce Simberg said in a release.
Homeowners' Jay Madhu, vice president of marketing, called 21st Century's response “troubling.”
“If everything is peaches and cream, why are they losing money?” Madhu asks.
In the meantime, Madhu says his company is “sitting on a tremendous amount of cash,” and will continue to analyze potential mergers and acquisitions within the insurance market.
As for a potential deal between the two, it appears the latest release from 21st Century is not likely to be the last word on the subject from either company.
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