The deal is likely to complete on July 1, 2009.

Dexia SA and Assured Guaranty has announced plans to acquire Financial Security Assurance Holdings in a cash and stock deal. Assured is likely to source the required cash with the proceeds of a public offering of securities. The deal is likely to complete in July 2009.

The purchase price to be paid by Assured is $361 million in cash and up to 44,567,000 common shares of Assured, with Assured having the option to reduce up to half of the shares otherwise deliverable in exchange for cash at a price of $8.10 a share.

Assured Guaranty is a holding company which, through its subsidiaries, provide credit enhancement products to the US and international public finance, structured finance and mortgage markets.