Alfa to consider going-private proposal

By Lisa Kerner

Charlotte, N.C., July 18 - Alfa Corp. received a proposal to take the company private from a majority stockholder group known as Alta Mutual that includes Alfa Mutual Insurance Co., Alfa Mutual Fire Insurance Co. and Alfa Mutual General Insurance Co.

Alfa Mutual is offering Alfa shareholders $17.60 per share in cash. A special committee of Alfa independent directors will review the offer.

"An offer has been made which provides an opportunity to consolidate these great companies," president and chief executive officer Jerry Newby said in a company news release.

"In order for the Alfa companies to compete effectively in an increasingly competitive personal lines insurance industry over the long term, we must accelerate our investment in technology and expansion of our distribution channels, while taking other actions designed to promote long-term growth. We believe this can be accomplished with a simpler and more nimble corporate structure."

Alfa is an insurance and financial services products company located in Montgomery, Ala.

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