(Reuters) – Specialty insurer Markel Corp said it will buy Alterra Capital HoldingsLtd for about $3 billion in cash and stock to diversify into reinsurance.
The offer of $31 per share represents a premium of 34 percent to Alterra's closing stock price of $23.15 on Tuesday. Shares of Alterra opened slightly below the offer price, while Markel's shares fell 5 percent to $462.
Each Alterra common share will be converted into a right to receive 0.04315 Markel common shares plus a cash payment of $10.
“The addition of Alterra's reinsurance and large account insurance portfolios will serve to diversify and strengthen Markel's current book of specialty insurance business,” Markel Vice Chairman Steven Markel said in a statement.
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