Homeowners Choice, Inc. (HCII)

[10 bagger]

HCII..$8.00

Homeowners Choice Inc. (HCII) said Tuesday it is offering $40.7 million for rival Florida insurance provider 21st Century Holding Company (TCHC).

The offer is $1 plus one-half share of Homeowners for each share of 21st Century common stock. That would value each share at $5.08, a 30% premium to Monday's closing price. Neither company's stock was active premarket.

In August, Homeowners Choice made a preliminary offer to 21st Century, but 21st Century Chief Executive Michael Braun responded last month that 21st Century's board didn't intend to accept the proposal, according to a letter on Tuesday to 21st Century.

"We hope that the 21st Century board will exercise its fiduciary duties and engage in a complete and careful review of our expression of interest and give it the serious consideration it deserves," said Homeowners Chairman Paresh Patel in the letter.

Homeowners Choice in August reported a 7% jump in second-quarter earnings while 21st Century swung to a profit.

Officials for 21st Century weren't immediately available to comment.

-By Nathan Becker, Dow Jones Newswires; 212-416-2855; [e-mail]