Cincinnati Financial Corp. announced today it was selling off more than half of its shares of Fifth Third Bancorp because the bank cut its dividend, and it expects sale proceeds of approximately $480 million.
The transaction will result in capital gains taxes of approximately $120 million, the insurance holding company said, and net proceeds of about $1.35 a share.
Kenneth W. Stecher, CFC president and chief executive officer, said in a statement, "In recent years, at times we have taken action to reduce our exposure to companies that have reduced or eliminated their dividend, helping protect our capital and future investment income.
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