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MBIA Inc. Recommends Rejection of Unsolicited Note Tender Offer by Bank of America Corporation



  MBIA Inc. Recommends Rejection of Unsolicited Note Tender Offer by Bank of
  America Corporation

Business Wire

ARMONK, N.Y. -- November 20, 2012

MBIA Inc. (the “Company” or “MBIA”) (NYSE: MBI) today announced that it
recommends rejection of the unsolicited tender offer by Bank of America
Corporation (“BOA”) on November 13, 2012 to purchase all of MBIA’s outstanding
5.70% Senior Notes due 2034 (the “Notes”). MBIA Inc. is the parent of MBIA
Insurance Corporation (“MBIA Corp.”).

MBIA arrived at this position after considering all of the facts and
circumstances surrounding BOA’s unsolicited note tender offer. In particular,
MBIA believes that BOA’s tender offer is not in the best interest of the
holders of our Notes because:

  * As reflected in BOA’s own public statements, we believe the purpose of
    BOA’s tender offer is not to make an economic investment in MBIA Inc.'s
    debt securities, but rather to affect the outcome of MBIA Corp.'s
    RMBS-related put-back claims against BOA and obtain a preferential
    settlement of those claims and its other MBIA Corp. exposure. Such an
    outcome would be detrimental to all policyholders other than BOA; and, in
    combination with BOA’s stated intention that the consent solicitation
    amending the bond indentures fail, detrimental to all MBIA Inc.
    bondholders. MBIA is evaluating its legal options with respect to BOA’s
    tender offer, including whether it violates any applicable laws, and may
    take such actions as it believes are available to it and necessary to
    protect the interests of its insurance subsidiaries' policyholders and its
    security holders. There can be no assurance that MBIA will prevail in any
    such action if it commences an action or that MBIA will successfully
    contest BOA’s tender offer on these or other grounds.
  * BOA has retained a right to terminate the tender offer under a number of
    specified circumstances, significantly reducing the likelihood that the
    transaction will be completed.

The announcements contained in this press release were made pursuant to MBIA’s
obligations under Rule 14e-2 under the Securities Exchange Act of 1934.

Holders of our Notes with questions about the Notes, the Consent Solicitation,
MBIA’s position with respect to the BOA tender offer or other matters should
consult his or her financial advisor or MBIA’s Investor Relations Department
at 914-765-3190.

About MBIA

MBIA Inc., headquartered in Armonk, New York is a holding company whose
subsidiaries provide financial guarantee insurance, as well as related
reinsurance, advisory and portfolio services, for the public and structured
finance markets, and asset management advisory services. The Company services
its clients around the globe with offices in New York, Denver, San Francisco,
Paris, London, Madrid and Mexico City. Please visit MBIA's website at
www.mbia.com.

Forward-Looking Statements

The information contained in this press release should be read in conjunction
with our filings made with the Securities and Exchange Commission. This
release includes statements that are not historical or current facts and are
"forward-looking statements" made pursuant to the safe harbor provisions of
the Private Securities Litigation Reform Act of 1995. The words "believe,"
"anticipate," "project," "plan," "expect," "intend," "will likely result,"
"looking forward" or "will continue," and similar expressions identify
forward-looking statements. These statements are subject to certain risks and
uncertainties that could affect BOA’s tender offer or the Company’s
operations, including, among other risks and uncertainties, whether the
Company will realize, or will be delayed in realizing, insurance loss
recoveries expected in disputes with sellers/servicers of RMBS transactions at
the levels recorded in its financial statements, the possibility that the
Company will experience severe losses or liquidity needs due to increased
deterioration in its insurance portfolios and in particular, due to the
performance of CDOs including multi-sector, CMBS and CRE CDOs and RMBS, the
failure to obtain regulatory approval to implement our risk reduction and
liquidity strategies, the possibility that loss reserve estimates are not
adequate to cover potential claims, the possibility that the Company's
obligations will be accelerated if MBIA Corp. becomes subject to a
rehabilitation or liquidation proceeding, the Company's ability to access
capital and the Company's exposure to significant fluctuations in liquidity
and asset values within the global credit markets, in particular in the ALM
business, the Company's ability to fully implement its strategic plan,
including its ability to achieve high stable ratings for National Public
Finance Guarantee Corporation or any other insurance subsidiaries, and the
Company's ability to commute certain of its insured exposures, including as a
result of limited available liquidity, the Company's ability to favorably
resolve litigation claims against the Company, and changes in general economic
and competitive conditions. These and other factors that could affect the
Company’s operations are discussed under the "Risk Factors" section in MBIA
Inc.'s most recent Annual Report on Form 10-K and Quarterly Report on Form
10-Q, which may be updated or amended in the Company's subsequent filings with
the Securities and Exchange Commission. The Company cautions readers not to
place undue reliance on any such forward-looking statements, which speak only
to their respective dates. The Company undertakes no obligation to publicly
correct or update any forward-looking statement if it later becomes aware that
such result is not likely to be achieved.

Contact:

MBIA Inc.
Media:
Kevin Brown, +1-914-765-3648
or
Investor Relations:
Greg Diamond, +1-914-765-3190
www.mbia.com
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