Dec 23 (Reuters) - Fremont Michigan InsuraCorp Inc rejected restaurant-chain operator Steak n Shake Co's buyout offer on Wednesday, saying the insurer's current strategic plans represent a better long-term value for shareholders.
'(The company is) focused on continuing to grow our business and maximize the value of the company, and we believe this hostile takeover attempt is not in the best interest of Fremont,' Chief Executive Richard Dunning said in a statement.
On Monday, Indianapolis-based Steak n Shake had said it plans to buy Fremont Michigan shares that it does not already own for about $24.50 a share -- at a 11.3 percent premium.
Steak n Shake shares, which recently saw a 1-for-20 reverse stock split, were flat at $325.90 Wednesday on the New York Stock Exchange.
Fremont was down 2 percent at $24.35 on the bulletin board.
(Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Unnikrishnan Nair) Keywords: STEAKANDSHAKE/TAKEOVER FREMONT (nivedita.bh@thomsonreuters.com ; within U.S. +1 646223 8780; Outside U.S. +91 804135 5800; Reuters messaging: nivedita.bh.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'(The company is) focused on continuing to grow our business and maximize the value of the company, and we believe this hostile takeover attempt is not in the best interest of Fremont,' Chief Executive Richard Dunning said in a statement.
On Monday, Indianapolis-based Steak n Shake had said it plans to buy Fremont Michigan shares that it does not already own for about $24.50 a share -- at a 11.3 percent premium.
Steak n Shake shares, which recently saw a 1-for-20 reverse stock split, were flat at $325.90 Wednesday on the New York Stock Exchange.
Fremont was down 2 percent at $24.35 on the bulletin board.
(Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Unnikrishnan Nair) Keywords: STEAKANDSHAKE/TAKEOVER FREMONT (nivedita.bh@thomsonreuters.com ; within U.S. +1 646223 8780; Outside U.S. +91 804135 5800; Reuters messaging: nivedita.bh.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
