Nationwide Surges 26%

123jump.com Staff
10 Mar, 2008
New York City

Nationwide received $47.20 per share or $2.2 billion buyout bid from a controlling group of shareholder. The group consists of Nationwide insurance companies and Nationwide Corp. The stock rallied after the news and traded above the offer price. The Nationwide stock traded as high as $65.50 last year and as low as $32 in the last five years. The company offer may be revised above $52 per share according to our estimate.

[R]11:00AM New York – Nationwide Financial is up 26% after a buyout bid from a controlling shareholder group.[/R]

U.S. stocks were caught in a downward trend after commodities traded lower and European markets were on the defensive. Malaysia fell 10% after the election results.

In the morning trading economic slowdown worries dragged the commodities and base metals lower. Oil fell 1% but managed to rebound to a new intra-day record above $107 a barrel. Gold fell as much as $11 and recovered to trade at a loss of $4.60 to $969.60 per ounce.

Countrywide Financial ((CFC)) after a report in Wall Street Journal that FBI is investigating the company. Bank of America is still going ahead with its plan to acquire the company despite the deteriorating mortgage market and weakening housing market. Countrywide stock traded at $4.79, down 29 cents.

Nationwide Financial Services Inc. ((NFS)) received $47.20 per share or $2.2 billion from a group of controlling shareholders. The proposal is from a controlling shareholder group of Nationwide Mutual Insurance Company, Nationwide Mutual Fire Insurance Company and Nationwide Corporation.

As of December 31, 2007, Nationwide had 46.7 million shares of Class A common stock outstanding, representing 33.7% equity ownership and 4.8% of the combined voting power. Nationwide controlling shareholder group owns all of the outstanding shares of Nationwide Class B common stock representing 66.3% equity ownership and 95.2% of the combined voting power of the shareholders.

The NFS Board of Directors has appointed a Special Committee of the Board, comprised entirely of independent, non-affiliated directors, to consider the proposal.