The Wall Street Journal reported on Tuesday 5/30/00 that Reliance Group Holdings Inc., parent to Reliance Insurance Company, is being sold to Leucadia National Corp., a New York based holding company known for purchasing distressed insurance companies and resuscetating them.
Leudadia will pay Reliance shareholders 0.11059346 of Leucadia stock for each Reliance share. That is equal to about $2.87 per share based on current market prices, and is 1/4 the book value of Reliance.
In 1998 Reliance was selling for $19 per share on the open market.
If the deal falls through Leucadia is protected by...
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