Transatlantic Considering New Validus Offer

Reinsurer Transatlantic Holdings says it is looking at the increased takeover offer from Bermuda’s Validus Holdings , but advised shareholders to sit tight for now, adding it was in talks with other parties.

New York-based Transatlantic, currently valued at around $3.3 billion, is proving to be a sought-after asset as it’s relatively cheap for the industry and has ‘long-tail’ insurance lines, such as medical malpractice and worker compensation, that are attractive to reinsurers more exposed to short-tail risks such as hurricane damage.

In September, Transatlantic called off a merger with Allied World Assurance in the face of overwhelming shareholder opposition.

It has also said a rival offer from a unit of Warren Buffett’s Berkshire Hathaway Inc. was too low, and was reported to have had talks with Enstar Group, which has hedge fund manager J. Christopher Flowers as one of its largest shareholders.

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