SF is ripe for the taking. Every competitor should just come out and go head to head with the big fat stupid dog. This is a freakin mutual company and we are cutting people like it is a fire sale in order to be bought out. Its nuts.
It is incompetence at the highest levels and Tipsord did not start it. It started with this idiotic EOM madness and it gets worse with every passing day. Stick a fork in it.
I think the strategy is to cut expenses and to become a stock company. Google demutualization or can a mutual company become a stock company and you will find yes, they can. It takes a majority vote of the policyholders. In a mutual company like SF the policyholders are the stockholders. Policyholders are offered stock or cash. So, basically i think what Tippy is doing is getting lean and cutting expenses to make a run at becoming a stock company. This allows the new stock company to raise capital through sale of stock. If you think about it, that is also how CEO's in other companies get filthy rich by getting a salary and receiving stock options based on performance metrics (sorry for the use of this bad word). I found where it said about 18-24 months to convert and offer public option to buy shares in the new stock company. If this happens, I would almost guarantee the pension fund will be discontinued in some form or fashion. Just throwing this out for consumption since the thread is taking about a take over. Don't think that will happen; demutualization is the goal, i think. Also found where a few other insurance companies have demutualized, including Prudential and Met Life. Good luck to all.
OP is a moron. If you don’t understand why that isn’t possible then you shouldn’t work here.
How can a non stock company be taken over?
You are an idiot. You can't "take over" a mutual. SF is still profitable thanks to its financial products last year, in billions. Companies only claims profits when they can't write anything else off.
How successful has EOM been?
A sale could happen
I heard that Satyam was looking to ourchase
A takeover of SF Mutual is one thing that will never happen. Talk to you CPA and ask them what happens to retained earnings (our policyholder protection fund) if we demutualize in conjunction with a takeover. It is in effect a poison pill that would burden the company taking us over with a $25B tax bill. Not even Warren Buffet can justify that. Also, look at our weaker and less-well-funded public competitors, Allstate, Mercury, Progressive, etc. None of them are being taken over either and it is much easier to eat a small fish than a whale.
I think the banks assets are certainly a target for a takeover, outright sale or some sort of co-branding. If they can drive enough insurance business away to make a buyout more attainable for a competitor I think that is within reason also. The company will be a shell of what it once was, either way.
Look at the airline industry. They will keep the name for recognition purposes but the house will be ran totally different. American Airlines for example is for all intents and purposes, is the old America West, just carrying the americna name. Eventually some underdog that knows how to compete and evolve will eat State Farm.
look back further..... When the EOM was introduced, Tipsord was involved. He was making the decisions a few years before Rust left... He created this mess...