UPDATE 1-Apax, Morgan to buy Hub Int'l for $1.7 billion

Related Topics

Mon Feb 26, 2007 3:29am EST

(Adds details)

NEW YORK Feb 26 (Reuters) - Insurance broker Hub International Ltd HBG.TO HBG.N said on Monday it agreed to be acquired by private equity firm Apax Partners together with Morgan Stanley Principal Investments for about $1.7 billion.

Apax [APAX.UL] and Morgan agreed to pay $40.00 per share for Hub. That marks a 16-percent premium over Hub's closing stock price of $34.49 on the New York Stock Exchange on Friday.

Including debt, the deal is valued at about $1.8 billion, the companies said.

Under the terms of the agreement, Hub may solicit alternative proposals from third parties until March 19. If it decides to terminate the Apax deal in favor of an alternate, Hub will have to pay a $21-million break-up fee.

Merrill Lynch and Co. and Scotia Capital acted as financial advisers to Hub while Morgan Stanley and Stephens Inc. advised Apax.

The deal is subject to shareholder approval, Canadian court approval and other regulatory approvals including merger notification filings in the United States and Canada.

((Reporting by Martinne Geller, editing by Quentin Bryar; Reuters messaging: martinne.geller.reuters.com@reuters.net; martinne.geller@reuters.com; +1 646 223 6023)) Keywords: HUB BUYOUT/

(C) Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nN26248242

M&A
Funds News
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.