Argonaut Group, a Los Angeles holding company whose principal business is in workers' compensation insurance, said Monday that it has agreed to be bought for $620 million by the investment firm of Gibbons, Green, van Amerongen.
Stockholders for Argonaut, whose stock trades in the national over-the-counter market, would receive $45 cash for each share of common stock plus one share of new preferred stock valued at $8 a share in a corporation to be formed by Gibbons Green and merged with Argonaut.
Argonaut stock closed Monday at $48 a share, up 50 cents.
Earlier Offer Failed
"No changes in management, marketing or operations are expected to result from the merger," Argonaut President D. W. Schrempf said in a statement. "We feel that it is very favorable to our shareholders."
Argonaut, formerly a subsidiary of Teledyne, became an independent company only last October. In April, Clarendon Group, a privately owned insurance company based in Bermuda, offered $37 a share for the company but raised its offer to $52 (about $600 million) last July. Negotiations collapsed last month, however, after disagreement on final terms.