Country Insurance to buy Atlanta-based Cotton States Life Insurance

<p>Country Insurance & Financial Services has agreed to purchase Cotton States Life Insurance Co. for about $128 million, the companies said Monday.</p><p>The offer of $20.25 a share was double the Friday closing price of Cotton States shares. It sent the stock soaring Monday to close at $17.70, up $7.60, or 75 percent, on heavy volume on the Nasdaq Stock Market.</p><p>The two companies have agreed to continue discussions on an exclusive basis. The transactions are subject to negotiation and execution of definitive agreements by Country and Cotton States.</p><p>In 2002, Atlanta-based Cotton States earned $1.13 a share, on revenue of $48.2 million.</p><p>Privately held Country Insurance & Financial, of Bloomington, Ill., and its alliances serve about 1 million households and businesses throughout the United States.</p>