Steak n Shake Increases Its Bid for Fremont Michigan InsuraCorp

Texas-based Biglari Holdings Inc., parent company of the Steak n Shake restaurants, has increased its proposal to acquire 100 percent of the issued and outstanding shares of common stock of Fremont Michigan InsuraCorp Inc. to $31 per share in cash.

Biglari Holdings said believes its proposition provides certainty, liquidity, and full and fair value for the shareholders of Fremont, as well as stability for its employees, agents and policyholders.

Biglari made an offer of $29 per share in October. Fremont Michigan has rejected the firm’s unsolicited overtures.

Last April, lawmakers passed and Gov. Jennifer Granhom signed legislation written specifically to make it more difficult for Biglari to take over the insurer. The legislation 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.

Lawmakers have been concerned that Biglari would move the insurer’s 75 employees out of the state while Biglari has said it has no plans to do that.