Canada's Manulife Buying Insurance Giant John Hancock

[papau]

http://ap.tbo.com/ap/breaking/MGAATZHM6LD.html

Sep 29, 2003
Canada's Manulife Buying Insurance Giant John Hancock in $10.4 Billion Deal By Greg Sukiennik Associated Press Writer

BOSTON (AP) - Canada-based Manulife Financial Corp. will acquire John Hancock Financial Services Inc. in a $10.4 billion stock swap, obtaining a venerable U.S. financial services firm that has long been a civic and corporate pillar of Boston. Under terms of the deal, shareholders of Boston-based John Hancock will receive 1.1853 shares of Manulife for each of their shares, or $37.60 per share, based on Hancock's Wednesday closing price. The deal announced Sunday would create a company ranked fourth in the United States in individual life insurance sales. The combined company would be Canada's largest individual and group life insurer. Based on Friday's close of $30.20 for Manulife's U.S.-traded shares, the offer is worth about $35.79 for each Hancock share, a 4 percent premium over Hancock's closing price Friday.

John Hancock, which had risen 7 percent on Friday amid published reports it was in advanced talks to be acquired, fell 74 cents to $33.56 in morning trading Monday on the New York Stock Exchange. Manulife's U.S. shares dropped $1.29, or more than 4 percent, at $28.91 on the NYSE. <snip>

The combined company will market products and services under multiple brands, including John Hancock in the United States and Manulife in both countries. John Hancock has 3,800 employees in Boston and 7,456 worldwide. Manulife employees 12,580 people worldwide, with 700 employees at its U.S. division in Boston.
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