Mergers News

AIG to buy 21st Century Insurance for $690 mln

NEW YORK, Jan 24 (Reuters) - American International Group Inc. AIG.N said on Wednesday it wants to buy 21st Century Insurance Group TW.N by acquiring the outstanding 38.1 percent of its publicly held shares for $19.75 a share in cash.

AIG and its subsidiaries already own approximately 61.9 percent of the outstanding shares of 21st Century. The cost of the transaction would be about $690 million.

Following the sale, 21st Century would become a wholly owned subsidiary of AIG, which made the offer in a letter to the 21st Century board. The proposed share price represents a 19 percent premium to Wednesday’s closing price, AIG said.

((Reporting by Ed Leefeldt;; Reuters Messaging:; +1 646 223 6315)) Keywords: AIG 21STCENTURY/

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.nWNAS8270