Alleghany to Buy Reinsurer Transatlantic for $3.4 Billion |
| BusinessWeek - Nov 21, 2011 |
Alleghany Corp. agreed to buy reinsurer Transatlantic Holdings Inc. for $3.4 billion in cash and stock and said it would appoint a former Berkshire Hathaway Inc. executive as chairman of the target company.
Investors will receive 0.145 share of Alleghany and $14.22 in cash for each share of Transatlantic, which values the firm at about $59.79 a share, the New York-based companies said today in a statement. Transatlantic will become a standalone subsidiary of Alleghany after the deal is completed, with Joseph Brandon, a former chief executive officer of Berkshire’s General Re Corp., as its chairman.
The agreement caps months of takeover interest in Transatlantic, a former unit of American International Group Inc. that helps insurance companies pool their biggest risks. A merger with Allied World Assurance Co. Holdings AG was scrapped in September, and the company shunned offers from Berkshire and Bermuda-based rival Validus Holdings Ltd. Davis Selected Advisers LP, Transatlantic’s largest shareholder, said it would support the Alleghany transaction after opposing Allied World.
Read Full Article from BusinessWeek
- Posted: 2011-11-21 10:05:08
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