A private equity firm increased its purchase price offer for Hub International Limited by $1.50 a share, raising the price to over $1.7 billion after the insurance brokerage received additional offers.
In a statement released today, Chicago-based Hub said Apax Partners raised the purchase price for the firm from $40 a share to $41.50.
Hub said the increase was made after the firm received a competing bid.
If the deal with Apax is terminated, Hub said it would be obligated to pay a 3 percent break-up fee that would amount to $53 million.
The firm said the company's board of directors has approved the arrangement.
According to a proxy statement filed with the Securities and Exchange Commission, at $40 a share the deal was worth $1.69 billion. Using information in the filing, the increased offer would bring the deal to approximately $1.76 billion.
Hub did not say who the other bidder was. W. Kirk James, chief corporate development officer for Hub, said the firm will not release the identity of the other bidders. He said there will be new SEC filings in the next four weeks informing shareholders of the on going process.
The firm said it expects the deal to be completed toward the end of the second quarter of 2007 subject to shareholder and regulatory approval in both the United States and Canada.
(This story was updated at 3:35 p.m.)
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