ACE Limited to Buy Penn Millers for $92 Million (ACE)

By Staff,

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Property and casualty insurer Penn Millers Holding Corp. ( PMIC ) on Thursday said it has agreed to be bought by insurance giant ACE Limited ( ACE ) for around $92.3 million..

The $20.50 per-share asking price represents almost a 26% premium over Penn Miller's Wednesday closing price of $16.30. PMIC is based in Wilkes-Barre, PA.

The deal, which is subject to shareholder approval, is expected to close during the first quarter of 2012.

ACE Limited shares were mostly flat in premarket trading Thursday.

The Bottom Line
Shares of ACE Limited ( ACE ) have a 2.18% dividend yield, based on last night's closing stock price of $64.19. The stock has technical support in the $60 price area. The stock is not trading far off all-time highs of $68-$69 a share.

ACE Limited ( ACE ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: ACE , PMIC

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