Officials OK merger of St. Paul, Travelers

ST. PAUL, Minn. (AP) -- Federal antitrust officials have cleared the way for the merger of the St. Paul Cos. Inc. and Travelers Property Casualty Corp. -- a deal that would form the second-largest U.S. commercial insurer.
The Federal Trade Commission this week finished its review of the combination, which was announced Nov. 17, without raising objections to the deal. That decision marks the first major regulatory hurdle cleared since the merger was announced last month.
Shareholders in both companies still must approve the merger, which is also subject to review by insurance regulators in a number of states, said Shane Boyd, a spokesman for the St. Paul.
Two lawsuits have been filed by Travelers shareholders, who claim they are getting a bad deal in the planned merger.
The combined Travelers-St. Paul would be based in St. Paul. Earlier this month, a number of top executives were named to head the company, evenly splitting the leadership positions between the two firms.
The St. Paul has about 9,800 workers overall, with 2,672 in St. Paul. Travelers has 20,000 workers, most of them in the East. The combined St. Paul Travelers Cos. would keep its personal and commercial insurance lines in Hartford, Conn., but its headquarters in St. Paul.
After the St. Paul-Travelers merger, the combined company would be second only to American International Group Inc. in writing commercial insurance policies.