NU Online News Service, July 18, 2:16 p.m.EDT

Allied World Assurance Co. Holdings and Validus Holdingscontinue the back-and-forth fight to acquire TransatlanticHoldings.

Over the weekend Validus sent Transatlantic more information in a further attempt to convince the company’sboard of directors that Validus’ offer is superior to the $3.2 billion merger deal made by Allied World last month.

Last week Validus made a $3.5 billion offer to acquire the New York-based internationalreinsurer, Transatlantic.

Today from Switzerland, Allied World says it “remains fully committed” to the agreed terms of its proposedmerger deal to form a new company with Transatlantic calledTransAllied.

Scott Carmilani, president and CEO of Allied World, says the“unsolicited” offer from Validus “is inferior” to its offer.

TransAllied would be a global specialty insurer and reinsureroperating in 18 countries and on six continents.

In a report from Keefe, Bruyette & Woods, the consulting firm says that theproposed Allied World-Transatlantic merger does not appear to be asignal of increased activity in the merger and acquisitionarena—but the deal in itself is considered a potentcombination.

Merging Validus, a leader of the short-tail reinsurance market,with Transatlantic, a leader of the long-tail market, will create acompany “properly balanced to manage the reinsurance underwritingcycle,” argues Ed Noonan, chairman and CEO of Validus.

Transatlantic says it will hold a special meeting of itsstockholders on July 22 to vote on the proposal from AlliedWorld