Transatlantic’s New Suitor

Bermuda-based re/insurer Transatlantic Holdings Inc., which has been at the centre of a months-long buyout battle, told the Reuter news agency today [Oct.11] it has entered talks and signed a confidentiality agreement with a fourth, unnamed, suitor.

Transatlantic is already in discussions with Bermuda-based Validus Holdings Ltd, Berkshire Hathaway unit National Indemnity Co. and an additional undisclosed party.

Last month, Reuters reported former Berkshire insurance executive, Joseph Brandon, was working with Morgan Stanley on a possible bid for Transatlantic and was the undisclosed party in question.

Transatlantic had a merger agreement with its Bermuda peer Allied World, which was struck in June, but both sides called off the deal in September amid overwhelming opposition.

Validus, which has been interested in Transatlantic for years, launched a hostile bid in July but agreed to a limited standstill while in talks with the company.

Transatlantic shares rose 0.7 percent to $50.44 in early trading on the New York Stock Exchange this morning, their highest level in nearly six weeks.

Transatlantic Holdings, Inc. is a leading international reinsurance organisation with operations worldwide. TRH’s subsidiaries offer reinsurance capacity on both a treaty and facultative basis — structuring programmes for a full range of property and casualty products, with an emphasis on specialty risks

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