UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14D-9
Solicitation/Recommendation Statement
Under Section 14(d)(4) of the Securities Exchange Act of 1934
(Amendment No. 2)
CNA SURETY CORPORATION
(Name of Subject Company)
CNA SURETY CORPORATION
(Name of Person Filing Statement)
Common Stock, par value $0.01 per share
(Title of Class of Securities)
12612L1008
(CUSIP Number of Class of Securities)
Rosemary Quinn
CNA Surety Corporation
333 S. Wabash Avenue, 41st Floor
Chicago, Illinois 60604
(312) 822-5000
(Name, address and telephone number of person authorized to receive
notices and communications on behalf of the persons filing statement)
With copies to:
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Mark D. Gerstein
Timothy P. FitzSimons
Latham & Watkins LLP
233 South Wacker Drive, Suite 5800
Chicago, Illinois 60606
(312) 876-7700
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Gary I. Horowitz
Simpson Thacher & Bartlett LLP
425 Lexington Avenue
New York, NY 10017-3954
(212) 455-7113 |
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Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer.
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This Amendment No. 2 (this Amendment No. 2) to the Solicitation/Recommendation
Statement on Schedule 14D-9 (as amended from time to time, the Schedule 14D-9) amends and
supplements the Schedule 14D-9 originally filed by CNA Surety Corporation, a Delaware corporation
(the Company), with the Securities and Exchange Commission (the SEC) on May 11, 2011, relating
to the tender offer commenced by Surety Acquisition Corporation (Purchaser), a Delaware
corporation and an indirect wholly-owned subsidiary of CNA Financial Corporation (CNA Financial),
pursuant to which Purchaser has offered to purchase all the outstanding Common Stock, par value
$0.01 per share (the Shares) of the Company not owned by CNA Financial and its subsidiaries
(other than the Company and its subsidiaries) at a cash purchase price of $26.55 per share without
interest thereon and less any applicable withholding of taxes, upon the terms and subject to the
conditions set forth in the Offer to Purchase dated May 11, 2011 and the related Letter of
Transmittal (which, together with any amendments or supplements, collectively constitute the
Offer). The Offer is described in a Tender Offer Statement and in a Schedule 13E-3 Transaction
Statement, both of which were filed with the SEC on May 11, 2011.
Except as otherwise set forth below, the information set forth in the Schedule 14D-9 remains
unchanged and is incorporated by reference as relevant to the items in this Amendment No. 2.
Item 8 Additional Information.
Item 8 of the Schedule 14D-9 is hereby amended and supplemented by adding the following thereto:
Litigation
On May 16, 2011, a putative class action lawsuit captioned CapGrowth Partners v. John F.
Welch, No. 11CH17746, was filed by a purported stockholder of the Company in the Circuit Court of
Cook County, Illinois (the CapGrowth Action). The complaint filed in the CapGrowth Action names
CNA Financial, the Company and the members of the Company Board as defendants and alleges that the
members of the Company Board breached and/or aided and abetted the other members of the Company
Board in breaching their fiduciary duties by acting to cause or facilitate the Merger Agreement.
The complaint also alleges that CNA Financial aided and abetted the members of the Company Board in
breaching their fiduciary duties and coerced the members of the Company Board to accept CNA
Financials proposal, and is coercing CapGrowth Partners and the Companys stockholders to accept
the Offer. The complaint seeks compensatory and rescissory damages.
The Company has reviewed the allegations contained in the complaint filed in the CapGrowth
Action and believes they are without merit. The Company intends to defend the CapGrowth Action
vigorously.
SIGNATURE
After due inquiry and to the best of my knowledge and belief, I certify that the information
set forth in this statement is true, complete and correct.
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CNA SURETY CORPORATION
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By: |
/s/ John F. Corcoran
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John F. Corcoran |
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Senior Vice President, Chief Financial Officer and Treasurer |
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Dated: May 17, 2011