Michigan Governor to Sign Fremont Insurance Anti-Takeover Bill

A spokeswoman says Michigan Gov. Jennifer Granholm is expected to sign legislation that would make it tougher for San Antonio-based Biglari Holdings Inc. to take over a west Michigan insurance company.

The legislation given final approval on a 28-8 Senate vote Tuesday requires that a perceived hostile takeover of a small insurer be approved by two-thirds of the shareholders of the targeted company, rather than by a simple majority.

It’s a narrowly tailored bill designed to protect Fremont Michigan InsuraCorp from a takeover.

Lawmakers worry that Biglari, formerly Steak n Shake Co., would dismantle Fremont or move its 75 employees out-of-state.

Biglari says it doesn’t intend to break up or move Fremont. The company says the legislation dilutes shareholder rights.