NU Online News Service, Jan. 3, 3:53 p.m. EST
The parent company of Steak n Shake restaurants has its sights set once again on Fremont Michigan InsuraCorp.
Biglari Holdings, headed by Sardar Biglari, 32, tried to take over Fremont late in 2009 and made another offer in October to acquire Fremont for $29 per share. Mr. Biglari's latest offer is $31 per share in cash, a move he said "provides certainty, liquidity, and full and fair value for the shareholders of Fremont."
On the afternoon of Jan. 3, shares of Fremont were selling at $28. Mr. Biglari owns about 10 percent of common stock of Fremont.
Fremont Michigan InsuraCorp., the ultimate parent of the Michigan-only property and casualty insurance company Fremont Insurance Company, has rejected the previous offers, saying that its own plans are best for its shareholders.
Since reorganizing to a holding company, San Antonio, Texas-based Biglari Holdings "is in the business of owning other businesses in whole and in part," Mr. Biglari, chairman and chief executive officer, has told shareholders.
He added in a letter to shareholders, "Wholly- or majority-owned businesses steer earnings–those not retained for their growth–upstairs to the parent for reallocation to fuel holding company growth."
Last year Michigan lawmakers passed a bill, introduced following Biglari's attempted takeover of Fremont, to protect domestic insurers from outside takeovers. It was signed into law in May. The legislation requires two-thirds of shareholders of a Michigan company with 200 or less employees to approve a takeover instead of a simple majority, according to a bill summary.
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