A.M. Best Co. has commented that the financial strength rating (FSR) of A- (Excellent) and issuer credit ratings (ICR) of “a-” of American Physicians Group and its primary member, American Physicians Assurance Corporation (American Physicians), are unchanged following the recent announcement that American Physicians Capital, Inc. (APCapital) (East Lansing, MI) (NASDAQ: ACAP) has entered into a definitive agreement to be acquired by The Doctors Company, an Interinsurance Exchange. The FSR of B+ (Good) and ICR of “bbb-” of APSpecialty Insurance Corporation (APSpecialty) also are unchanged. The transaction is expected to close during the fourth quarter of 2010, subject to shareholder and regulatory approval.
Under the terms announced, The Doctors Company will pay $41.50 per share, representing a 31% premium over APCapital’s closing price on July 7, 2010, the last trading day prior to the announcement of the acquisition. The terms of the merger agreement also prohibit APCapital from paying dividends or repurchasing its shares without the prior consent of The Doctors Company.
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