Cendant Tops Rival Bid for American Bankers

Cendant Corp. said it offered to buy American Bankers Insurance Group Inc. for $2.7 billion in cash and stock, topping a $2.2-billion bid from American International Group Inc. Cendant, formed last year by the $13.5-billion merger of CUC International Inc. and HFS Inc., proposed a two-step takeover that values American Bankers at $58 a share, a 23% premium above the $47-a-share price announced by AIG and American Bankers on Dec. 22. Cendant, with offices in Stamford, Conn., and Parsippany, N.J., is a franchiser of real estate, travel and hotel services. American Bankers, based in Miami, provides specialized insurance such as life insurance related to loans. New York-based AIG is the nation’s second-largest property and casualty insurer. Cendant said its distribution channels and customer base will be a “valuable outlet” for American Bankers’ products. In New York Stock Exchange trading, American Bankers stock jumped $9.63 to close at $55.88; Cendant stock fell 88 cents to close at $33.44; and AIG stock rose $3.13 to close at $111.13.