May 19, 1998 |
Nationwide Mutual Insurance Co. said it will begin a $1.5-billion tender offer for Allied Group Inc., offering a 69% premium in a rare hostile takeover in the insurance industry. Columbus, Ohio-based Nationwide, the sixth-largest U.S. property and casualty insurer, said it will offer Allied investors $47 a share. Allied shares soared $14.56 to close at $42.31 on the New York Stock Exchange. Nationwide wants to buy Allied to increase sales through independent agents in the Midwest.