CHICAGO, May 26, 2000 — CNA Financial Corporation (NYSE: CNA) announced today that Continental Casualty Company (CCC), a wholly owned subsidiary, has withdrawn its proposal to acquire by tender offer the shares of CNA Surety Corporation (NYSE: SUR) not already owned by CCC and its affiliates.
CNA described its March 20 proposal as a move consistent with the company's intention to sharpen its strategic focus on serving businesses. The $13 per share price then represented a 17.4% premium over CNA Surety's average closing price for the past 30 trading days of $11.07 per share.
Based on sharply rising stock prices across the property-casualty insurance sector, CNA has determined that market conditions are no longer favorable for pursuing its previously announced intention of making a cash tender offer for shares of CNA Surety common stock. Although CNA was prepared to increase its offer, it could not reach an agreement that was both acceptable to CNA Surety and consistent with CNA's rate of return goals. CNA today informed CNA Surety of its decision not to pursue the proposed tender offer. CCC and its affiliates currently own approximately 62 percent of the outstanding shares of CNA Surety common stock.
CNA Financial Corporation is a holding company whose primary subsidiaries are property-casualty and life insurance companies. Collectively, these subsidiaries are CNA, one of the largest insurance organizations in the United States.
