Validus Extends Its Transatlantic Offer

Bermuda’s Validus Holdings Ltd. said today [Nov. 1] it has extended its offer for Transatlantic Holdings Inc.

The offer was set to expire at 5 p.m. October 31. The extension lasts until November 25.

After ending its merger agreement with Allied World Assurance, New York-based Transatlantic announced it had entered into a confidentiality agreement with Validus — which stepped in with a surprise cash-and-stock offer before Transatlantic could close on its deal with Allied World.

Transatlantic rejected Validus’ original offer, valued at the time to be about $3.5 billion. Validus then took its offer directly to Transatlantic shareholders and the company’s filed suits against each other.

In separate statements, Transatlantic and Par-La-Ville Road-based Validus say they now continue to exchange information related to a possible transaction.

Transatlantic says it is also in discussions with “other parties regarding potential strategic alternatives,” and the US international reinsurance company is “fully committed to reaching a conclusion to this process expeditiously.”

Warren Buffett’s National Indemnity Co. reinstated its cash offer of $52 per share for Transatlantic shortly after the merger breakdown with Allied World, but that offer was to expire shortly after it was made. .

Transatlantic said it will not comment further unless required by New York Stock Exchange regulations.

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Category: All, Business