The Midland Co. and Munich Re Sign Merger Agreement

Cincinnati — The Midland Co., a Cincinnati-based provider of specialty insurance products and services, today reported that it has signed a definitive merger agreement with German-based Munich Re, whereby Munich Re will acquire all of Midland's outstanding stock. Under the terms of the agreement, stockholders of Midland will receive $65 in cash per share. This represents a 13.5% premium above the Oct. 16, 2007 closing price of $57.27 and a 55% premium over Midland's share price at the start of 2007. The transaction is expected to be completed in the first half of 2008, subject to shareholder and regulatory approvals, as well as other customary closing conditions.

The proposed transaction has been approved by the Board of Directors of both companies. The equity component of the transaction is valued at $1.3 billion and Munich Re will also assume all outstanding debt obligations. Midland intends to continue to pay regular cash dividends to shareholders until the completion of the transaction.

Source: The Midland Co.