NU Online News Service, Nov. 3, 12:26 p.m.EST

The latest offer from Validus Holdings to buy TransatlanticHoldings has been rejected—the latest chapter in the pursuit of theNew York-based international reinsurance company.

The latest cash-and-stock offer was valued at more than $3.4billion, with an increase to as much as $55.35 a share based onTransatlantic's closing price on Nov. 2, Validus says.

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 offer before Transatlantic could close on its deal withAllied World.

“Given the work that has been done on both sides over thepast six weeks, Validus was extremely disappointed that theTransatlantic board has failed to accept our increased offer,”wrote Edward J. Noonan, chief executive of Validus, to theTransatlantic board.

Transatlantic also rejected Validus' original offer. Validus then took its offerdirectly to Transatlantic shareholders and the company's filedsuits against each other after the two reached an impasse overprovisions in a proposed confidentiality agreement.

Following the latest rebuff, Transatlantic tells stockholders totake no action, as Validus again takes its offer directly tothem.

“Validus firmly believes that Transatlantic stockholders willfind our increased offer compelling,” says Noonan.

Validus will also renew its request to replace the Transatlantic board with three of its owncandidates—a move Validus backed off of when it reentered intotalks with Transatlantic.

Transatlantic says it “remains in confidential discussions withother parties regarding potential strategic alternatives,” and thatit is “fully committed to reaching a conclusion to this processexpeditiously.”