FAI directors recommend HIH bid

SYDNEY - Directors at FAI Insurance Limited in Australia yesterday announced they were recommending shareholders accept the A$242m takeover bid launched by HIH Insurance. Shareholders are expected to receive a copy of FAI's formal response to the bid, containing the directors' recommendation in the next few days, according to Reuters. HIH offered one HIH share for every three FAI shares, or A$2.25 in cash and one HIH share for every six FAI shares. In September FAI acquired a 14.3% share in the company from the largest shareholder- the Adler family. FAI's managing director, Rodney Adler, has also reportedly said his family would accept HIH's offer for its remaining 16% stake.