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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): June 30, 1997
LEUCADIA NATIONAL CORPORATION
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(Exact Name of Registrant as Specified in its Charter)
NEW YORK
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(State or Other Jurisdiction of Incorporation)
1-5721 13-2615557
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(Commission File Number (I.R.S. Employer Identification No.)
315 PARK AVENUE SOUTH, NEW YORK, N.Y. 10010
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(Address of Principal Executive Offices) (Zip Code)
(212) 460-1900
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(Registrant's Telephone Number, Including Area Code)
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(Former Name or Former Address, if Changed Since Last Report)
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Item 5. Other Events
The information set forth in the press release issued
by Leucadia National Corporation, attached hereto as Exhibit
99.1, is incorporated herein by reference.
Item 7. Financial Statements, Pro Forma Financial Statements
and Exhibits
(c) Exhibits
99.1 Press release of Leucadia National Corporation
dated June 30, 1997.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
LEUCADIA NATIONAL CORPORATION
By: /s/ Barbara L. Lowenthal
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Barbara L. Lowenthal
Vice President and
Comptroller
Date: June 30, 1997
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EXHIBIT INDEX
Item No.
99.1 Press release of Leucadia National Corporation
dated June 30, 1997.
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NYFS04...:\30\76830\0227\5430\FRM6307M.030
EXHIBIT 99.1
Press Release
FOR IMMEDIATE RELEASE
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JUNE 30, 1997
CONTACT: RUTH KLINDTWORTH
(212) 460-1900
LEUCADIA NATIONAL CORPORATION ANNOUNCES AGREEMENT
FOR SALE OF COLONIAL PENN P&C GROUP
TO GENERAL ELECTRIC CAPITAL CORPORATION
New York, New York...Leucadia National Corporation (NYSE and PCX: "LUK") today
announced that it has signed an agreement to sell the property and casualty
insurance business of the Colonial Penn P&C Group to General Electric Capital
Corporation for $950 million in cash. The terms of the transaction provide that
1997 earnings will remain in the Colonial Penn P&C Group, with General Electric
Capital Corporation paying interest on the purchase price at a rate of 6% per
year from January 1, 1997 to closing.
The Colonial Penn P&C Group consists of Colonial Penn Insurance Company,
Colonial Penn Madison Insurance Company, Colonial Penn Franklin Insurance
Company, Bayside Casualty Insurance Company and Bay Colony Insurance Company.
The Group's primary business is providing private passenger automobile insurance
to the mature adult population through direct response marketing.
The transaction is subject to Leucadia shareholder approval, regulatory
approvals and customary closing conditions and is expected to close during the
fourth quarter of 1997. The Company expects to report a pre-tax gain of
approximately $600 million upon consummation of the transaction. For calendar
year 1996, the Colonial Penn P&C Group had revenues of approximately $596
million and pre-tax earnings of approximately $73 million.
On April 30, 1997, Leucadia National Corporation announced that it had signed an
agreement to sell its subsidiaries, Colonial Penn Life Insurance Company and
Providential Life Insurance Company and certain related assets, including its
health insurance operations, to Conseco, Inc. for $460 million payable in notes
secured by non-cancellable letters of credit and cash. These life insurance
companies are principally engaged in the sale of graded benefit life insurance
policies through direct marketing and agent-sold Medicare supplement insurance.
The
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Conseco sale is subject to customary terms and conditions, including the receipt
of regulatory approvals, and is expected to close in the third quarter of 1997.
The Company expects to report a pre-tax gain of approximately $300 million upon
consummation of the Conseco transaction. For calendar year 1996, those
operations being sold had revenues of approximately $230 million and pre-tax
earnings of approximately $48 million.
The Company's remaining insurance operations consist of personal and commercial
property and casualty insurance coverage conducted through the Empire Group and
the variable annuity business conducted through Charter National Life Insurance
Company and Intramerica Life Insurance Company.
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