Steel Partners Wants to Buy More Conseco Shares

In an amended 13D filing on Conseco Inc. (CNO), 9.8% holder Steel Partners II disclosed a letter to the company saying it believes the shares are undervalued and said it is interested in purchasing additional shares.

The firm said:

We, with the support of Conseco, would like to acquire the maximum number of Shares allowable without limiting Conseco's ability to fully realize the benefits of its net operating loss carryforwards ("NOL"). We believe that the NOL is an extremely valuable asset to Conseco and do not wish to cause an annual limitation on the utilization of the NOL. We believe, based on Conseco's public filings, that we can increase our percentage ownership up to 22% of the outstanding Shares (the "NOL Threshold"). We seek the Board's support for us to acquire the Shares using a "modified Dutch auction" structure with a pricing range of $12.50 to $14.00 per Share. By conducting a tender offer, we would provide liquidity to any shareholders who desire to sell their positions in a manner that treats all shareholders equally and fairly. We may also acquire additional Shares in the open market following the tender offer to the extent there is additional availability without compromising the NOL.