NU Online News Service, Nov. 1, 2:59 p.m.EST

Validus Holdings Ltd. says it has extended its offer forTransatlantic Holdings Inc.

The offer was set to expire at 5 p.m. Oct. 31. The extensionlast until Nov. 25.

After ending its merger agreement with Allied World Assurance,Transatlantic announced it had entered into a confidentiality agreement with Validus—who stepped in with anunsolicited cash-and-stock offer before Transatlantic could closeon its deal with Allied World.

Transatlantic rejected Validus' original offer, valued at the time to beabout $3.5 billion. Validus then took its offer directly toTransatlantic shareholders and the company's filed suits againsteach other.

In separate statements, Transatlantic and Bermuda-based Validussay they now continue to exchange information related to a possibletransaction.

Transatlantic says it is also in discussions with “other partiesregarding potential strategic alternatives,” and the New York-basedinternational reinsurance company is “fully committed to reaching aconclusion to this process expeditiously.”

Warren Buffett's National Indemnity Co. reinstated its cash offer of $52 pershare for Transatlantic shortly after the merger breakdown withAllied World, but that offer was to expire shortly after it wasmade. .

Transatlantic says it will not comment further unless requiredby New York Stock Exchange regulations.