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Allstate Recommends Shareholders Reject Peer and Peri Mini-Tender Offer
Monday 15 April 2019

15 April 2019 - US-based insurer The Allstate Corp. (NYSE: ALL) has received notice of an unsolicited "mini-tender" offer by investor Peer and Peri LLC to purchase up to 40,000 shares of Allstate's common stock, the company said.

Peer and Peri's offer price of USD 76.00 per share is approximately 20% lower than the USD 94.87 closing price of Allstate shares on April 8, 2019, the date the offer commenced.

Allstate stressed to shareholders it is not affiliated in any way with Peer and Peri, the offer or the offer documentation.

The Peer and Peri mini-tender offer is not related in any way to Allstate's share repurchase program. However, the rules and regulations of the Securities Exchange Act of 1934 require Allstate to publicize its position with respect to the offer.

Allstate recommends against shareholders tendering shares in response to the offer because the offer price was significantly below the market price of Allstate's stock at the commencement of the offer and is also significantly below the company's current price.

The offer also does not provide investors with the same level of protections under US federal securities laws as provided by larger tender offers.

Mini-tender offers seek to acquire less than 5% of a company's outstanding shares, thereby avoiding many disclosure and procedural requirements under US federal securities laws, and the rules and regulations of the US Securities and Exchange Commission.

The SEC has cautioned investors about mini-tender offers, noting that they "have been increasingly used to catch investors off guard" and that many investors who hear about mini-tender offers "surrender their securities without investigating the offer, assuming that the price offered includes the premium usually present in larger, traditional tender offers."
Date Published: 15/04/2019
Target: The Allstate Corp
Country: USA
Deal Size: 3.040m (USD)
Sector: Insurance
Type: Stakebuilding
Financing: Cash
Status: Bidding
Buyer: Peer and Peri LLC