- Image by c r i s via Flickr
Two days after sending a letter to the Fremont Michigan Insuracorp(FMMH.OB) board reiterating its $29 cash offer, Biglari Holdings(BH) issued a press release this evening, increasing its offer to $31 per share in cash. Though it was disclosed that the companies had met on December 1, Fremont has not publicly responded to Biglari’s previous offer, other than to say that a special committee had been convened to evaluate the offer.
Biglari’s previous takeover attempt of Fremont resulted in Fremont successfully lobbying for a Michigan state law specifically tailored to prevent its takeover. Given the premium that this offer represents to both Fremont’s trading price and its book value, it is difficult to understand how Fremont’s board can continue to ignore it. Or perhaps they’ll just issue another press release with helpful tips for safe New Years Eve driving, and ignore the elephant in the room.
Disclosure: The author owns shares of both BH and FMMH
Related articles
- Biglari Continues Pursuit of Fremont, Fremont Offers Homeowners Wood-Burning Unit Maintenance Advice (inelegantinvestor.com)
- Biglari Holdings Proposes The Creation Of Non-Voting Class B Shares (inelegantinvestor.com)
