Aegon to pay $181 million to Transamerica chairman

Dutch giant is seeking to pay $10.8 billion for Calif. insurer


June 23, 1999|By Mark Ribbing | Mark Ribbing,SUN STAFF

Aegon NV, the large Dutch insurance company that has its U.S. headquarters in Baltimore, is planning to pay $181.2 million to the chairman and chief executive officer of Transamerica Corp., the San Francisco insurer that Aegon is acquiring.

Frank C. Herringer, the Transamerica CEO, would receive $145.8 million in previously vested stock options, Transamerica said yesterday.

In addition, Herringer would get $35.4 million in incentive-plan payments and in unvested stock options that will become exercisable when Aegon's $10.8 billion purchase of Transamerica is completed.

The Aegon-Transamerica deal is expected to close by the end of summer. Transamerica's shareholders are to vote on the acquisition July 20.

Herringer would remain with the merged company as chairman of its U.S. operations. He would also serve on the executive board of Aegon.

The shares of Transamerica executives are being cashed out at $78 per share.

Shares in Transamerica gained 50 cents yesterday to close at $76. Shares of Aegon gained 93.75 cents to close at $82.9375

Aegon agreed in February to buy Transamerica for $10.8 billion. The acquisition, which received approval of the European Union this month, still needs the approval of U.S. regulators.

The company would move its U.S. headquarters to California, but few, if any, of the 800 jobs based in Baltimore are likely to be affected. The acquisition would create the third-largest life insurance company in the United States.

Pub Date: 6/23/99

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