Conseco Inc., of Carmel, Ihd, and Kemper Corp. on Monday announced a definitive merger agreement, under which Kemper accepted a $67-a-share offer Conseco made last week.

David B. Mathis, chief executive of Long Grove, Ill.-based Kemper, said in a prepared statement that the firm's board had unanimously approved the offer, and believed it to be "in the best interests" of shareholders.

Terms of the Deal

The agreement calls for each issued and outstanding share of Kemper common stock to be converted into $56 cash, plus a share of Conseco common stock equal to its average closing price prior to the merger, divided by $11.

Citibank agreed to underwrite a $1.2 billion loan for the $3.25 billion deal. The loan was reported to be the bank's largest since the 1980s.

The merged firm would be a leader in mutual fund and annuity sales through banks.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.