Aon Corp.`s chairman Wednesday threw cold water on speculation that he might consider a hostile bid for Corroon & Black Corp.
Patrick Ryan said in a statement that the Chicago-based insurance holding company will continue to press for a meeting with Corroon directors to discuss Aon`s $840 million acquisition proposal for Corroon. But he said he will withdraw the offer if Corroon`s board again refuses to talk about the bid.
”We`re not considering being hostile,” Ryan said in an interview.
”We`re not interested in being the toughest guy around. . . . We could make their life very miserable, but it`s not our style,” he said, referring to Corroon.
Corroon officials had no comment on Aon`s statement. But analysts said it`s unlikely that directors of the New York brokerage firm would take up Aon`s proposal after rejecting it Tuesday in favor of a previous merger plan with Willis Faber PLC of London.
”This is absolutely a dead issue,” said Russell Miller, a San Franciso investment banker.
But it remains to be seen whether Corroon shareholders will approve the Willis Faber deal at a meeting on Sept. 28. Ryan wouldn`t say what action Aon might take if Corroon holders vote down the merger.
Corroon stock closed down $3.50 a share to $32 on the New York Stock Exchange. The stock was halted briefly Wednesday afternoon after being hit with sell orders in the wake of Aon`s announcement. Aon stock rose 12 cents, to $32.37.
In a release issued late that night, Ryan described Corroon`s failure to discuss the Aon bid as ”incredible” and accused Corroon directors of blocking shareholders from a ”superior” bid. The Aon bid is equal to $40 a share in cash, while the Willis Faber deal is a stock swap now worth $30.86 a share.
