Validus’ Latest Transatlantic Offer Rejected

Bermuda’s Validus Holdings has increased its bid for Transatlantic Holdings Inc., though the reinsurance company has again turned down its offer in the latest step in a long-running takeover battle.

The new bid, worth up to about $3.51 billion in cash and stock, values New York-based Transatlantic at about $55.35 a share, a six premium over yesterday’s [Nov.2] close. Validus has attempted a hostile takeover of Transatlantic since July, but its shares have lost 12 percent of their value since it placed the original bid. The prior deal was also worth about $3.5 billion at the time it was made.

A number of suitors have been angling for control of Transatlantic. In September, it mutually terminated a takeover bid from Allied World Assurance Co. Holdings in the wake of criticism from Transatlantic’s largest shareholder and shareholder advisory firms.

The company has entered confidentiality pacts to talk about strategic options with several other parties, including National Indemnity Co., a Berkshire Hathaway Inc. unit and two unnamed parties. It previously dismissed an offer valued at about $3.25 billion from Berkshire as “opportunistic” after the conglomerate failed to increase its bid.

Validus said it is continuing its effort to replace three board directors.

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