Travelers Property Casualty Corp said it had settled three lawsuits brought against its board by four Travelers shareholders relating to the proposed merger with The St. Paul Companies.
It said the settlement was subject to court approval.
Travelers and The St. Paul have agreed to reduce the termination fee payable by either company under certain circumstances contained in the merger plan.
The two companies announced the merger on 17 November 2003, in a move that will create the second largest commercial insurer in the US, if it proceeds as planned. The newly merged company will be called The St. Paul Travelers Companies.
Travelers said the merger was expected to close in the second quarter of 2004, pending approval, with shareholder meetings for both companies scheduled for 19 March 2004.
