OneMain Rejects Exchange Offer

Posted: Updated:
EVANSVILLE -

The board of directors for Evansville-based OneMain Holdings Inc. (NYSE: OMF) has rejected an unsolicited exchange offer from Las Vegas-based IEG Holdings Corp. OneMain calls the offer to exchange one share of its common stock for two shares of IEG common stock "grossly inadequate and reckless."

IEG made the offer on January 5. In a press release, the company says the offer doesn't reflect the value of OneMain and is not in the best interests of its stockholders. 

"Following discussion, our Board was unified in its determination that this offer is an opportunistic lowball offer that does not even remotely begin to value the Company appropriately," said OneMain Chief Executive Officer Jay Levine. "IEG Holdings is not a logical acquirer of OneMain, and the 53% discount that they are offering our stockholders – paid entirely in highly volatile and illiquid stock – is not even close to a sensible value proposition. We urge our stockholders to simply ignore this distracting and egregious offer entirely."

In a filing with the U.S. Securities and Exchange Commission, OneMain says IEG proposed transforming OneMain into a completely online business, "resulting in the closure of over 1,700 OneMain offices, termination of over 11,000 employees, substantial cuts in advertising/marketing costs and other significant cost cutting measures."

OneMain says such a move would "fundamentally damage" its business.

  • Perspectives

    • (photo courtesy of Conexus)

      Getting the Word Out About Manufacturing & Logistics

      As the epicenter of the nation’s advanced manufacturing and logistics industries, Indiana has a compelling story to tell about how Hoosier companies make and move the goods people depend on every day. Our goal is to ensure everyone hears these stories – many of which share a common theme focused on cutting-edge technologies that are transforming the way products are made and moved around the world and the people who use them. Conexus Indiana launched an...

    More

Events



  • Most Popular Stories

    • (photo courtesy of The Times of Northwest Indiana)

      Historic Hospital to be Torn Down in Gary

      A building that once represented the racial divide in the city of Gary, but long provided health care to the African American community, will soon fall to a wrecking ball. The city says it intends to raze the long-abandoned St. John’s Hospital. 

    • The Honda Greensburg plant opened in 2008.

      Honda to Invest $4M, Add Jobs at Greensburg Plant

      The American Honda Motor Co. continues to invest in its Greensburg, Indiana plant as it has announced the factory will be producing the company’s first electrified sport utility vehicle in the U.S. The company says it will invest more than $4 million and add 34 new jobs in the plant to support production of the CR-V Hybrid.  

    • Photo courtesy of Indianapolis Motor Speedway

      Red Bull to Discontinue Air Race World Championship

      The Red Bull Air Race at the Indianapolis Motor Speedway, originally scheduled for October, has been canceled as a result of Red Bull's decision to discontinue the Air Race World Championship following the 2019 season. The company says the races scheduled between June and September in Russia, Hungary and Japan will run as planned. 

    • On-Air

      Find out when and where you can watch and listen to our reports.

    • Money magazine judges Fishers as 3rd best place to live in the U.S.

      Fishers Makes Top 10 List of 'Best Places to Live'

      Three communities in Indiana made the top 100 list of best places to live in the country, but only one made the top 10. Fishers was judged by Money magazine as the third best place to live in the United States, behind Clarksville, Tennessee and Round Rock, Texas.