Business & Finance: Surety to Market

Last month New York State Insurance Superintendent Louis Pink was offered $10,031,000 for National Surety Corp., successor to the big Manhattan Fidelity-Surety Company which slipped into the hands of Mr. Pink’s department (TIME, March 23). This high bid for all of National’s 100,000 shares of stock, was made by Commercial Investment Trust, cash-heavy installment financier. Last week, however, the courts ordered Mr. Pink to reject C. I. T.’s bid, accept one from Banc-america-Blair Corp. for 70,000 shares at a slightly higher per-share price.

The court felt that a public offering of National’s stock by the banking house would be better for National’s creditors, who will be permitted to buy the remaining 30,000 shares. C. I. T. would have locked up the stock in its safe. With 70,000 shares distributed among investors, a market—with consequent possibilities for future profits—would then exist for the stockholding creditors.