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March 15, 2012 at 08:53 AM
WILMINGTON, Del. (AP)—Delphi Financial Group Inc. said Tuesday that its shareholders approved the acquisition of the company by Tokio Marine Holdings Inc.
The Japanese company said in December that it would buy the specialty insurance company in a roughly $2.7 billion deal as it tried to strengthen its position in the U.S. insurance market.
The deal calls for Tokio Marine to pay $43.875 for every Class A share of Delphi and $52.875 for every Class B share. Delphi stockholders will also receive $1 in cash for every share they hold, as a one-time special dividend.
Some Delphi shareholders challenged the deal because it gave Delphi founder Robert Rosenkranz a higher price for his Class B shares than public investors holding Class A shares would receive. But a judge ruled last week that he would not halt the vote.
The judge said that plaintiffs likely would succeed in arguing that Rosenkranz was not entitled to the differential, but that Delphi shareholders are still getting a premium and should be allowed to vote on the deal.
