UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
__________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): Commission File Number
July 24, 1996 1-8233
USF&G CORPORATION
(Exact Name of Registrant as Specified in Charter)
Maryland 52-1220567
(State or Other Jurisdiction (IRS Employer Identification No.)
of Incorporation)
100 Light Street, Baltimore, Maryland 21202
(Address of Principal Executive Offices)
(410) 547-3000
(Registrant's telephone number, including area code)
USF&G CORPORATION
FORM 8-K
______________________
Item 5. Other Events
LGT Asset Management and its parent, Liechtenstein Global Trust ("LGT"), and
Chancellor Capital Management, Inc. ("Chancellor"), announced today that a
definitive agreement has been signed under which LGT will purchase Chancellor.
The total consideration for Chancellor could reach a maximum of $300 million,
contingent upon the level of growth in the business over the next five years.
Significant long-term incentives are included to retain key employees.
United States Fidelity and Guaranty Company, a wholly owned subsidiary of USF&G
Corporation, holds an approximate 44.5% ownership interest (on a
fully diluted basis and assuming conversion of preferred stock) in Chancellor.
If thetransaction closes in accordance with the agreement announced today, then
USF&G expects to report a realized capital gain of approximately $75 million.
USF&G CORPORATION
FORM 8-K
______________________
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Current Report on Form 8-K to be signed on its
behalf by the undersigned hereunto duly authorized.
USF&G CORPORATION
By: DAN L. HALE
Dan L. Hale
Executive Vice President,
and Chief Financial Officer
July 24, 1996
