American Union Withdraws Offer for Meridian Shares

American Union Insurance Co. has withdrawn its offer to purchase 50.1 percent of the shares of Meridian Insurance Group Inc. effective immediately. The offer is being withdrawn, according to a Reuters news service report, because American Union was unable to structure a transaction with Meridian comparable to the proposed merger deal with a unit of State Automobile Mutual Insurance Co.

Meridian rejected a takeover offer from American Union in October, saying it planned to explore strategic alternatives, including repurchasing its shares, taking the company private, demutualizing its mutual insurance company affiliates and a “business combination.”