Fremont Michigan Insuracorp(FMMH) issued a terse statement today acknowledging receipt of a letter from Sardar Biglari, CEO of Biglari Holdings(BH) earlier this week, proposing to buy all shares of Fremont that Biglari Holdings does not own for $29 per share.
Fremont stated that it has asked a Special Committee of the Board to evaluate the offer, and that
“Our Board, management team, associates and agents remain focused on continuing to grow our business and maximizing the value of the Company,” said Richard E. Dunning, President and CEO of Fremont. “Our Board takes its fiduciary duty seriously, and we will carefully review this matter in light of its impact on our shareholders, and all our stakeholders, as well as current laws and regulations.”
The last part, regarding “current laws and regulations”, is particularly interesting given that Fremont’s previous response to an overture from Biglari was to lobby successfully for a new law to pass in Michigan requiring a 2/3 majority of shareholders to support a change of control for Fremont Michigan or any company substantially similar to it. It remains uncertain what the next step will be here, but it should be interesting to watch.
Disclosure: The author owns shares in both BH and FMMH
