Conseco's class B preferred stock converts to common shares

By Angela McDaniels

Seattle, May 16 - Conseco, Inc. said that all of its class B 5.5% mandatorily convertible preferred stock due May 15, 2007 has been converted into shares of the company's common stock.

Under the terms of the preferreds, each of the 27.6 million preferred shares outstanding was converted into 1.3699 shares of common stock, and holders were paid cash in lieu of fractional shares at the rate of $18.35 per common share.

The company's shares closed at $19.09 (NYSE: CNO) on Wednesday.

As a result of the conversion, the Carmel, Ind.-based insurance company's annual divided expense was reduced by about $38 million and the number of Conseco common shares outstanding increased by 37.8 million to 188.6 million, according to a company news release.

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