Validus Rebuffed, Takes Latest Offer to Transatlantic Stockholders

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

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

The latest cash-and-stock offer was valued at more than $3.4 billion, with an increase to as much as $55.35 a share based on Transatlantic'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 an unsolicited offer before Transatlantic could close on its deal with Allied World.

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

Transatlantic also rejected Validus' original offer. Validus then took its offer directly to Transatlantic shareholders and the company's filed suits against each other after the two reached an impasse over provisions in a proposed confidentiality agreement.

Following the latest rebuff, Transatlantic tells stockholders to take no action, as Validus again takes its offer directly to them.

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

Validus will also renew its request to replace the Transatlantic board with three of its own candidates—a move Validus backed off of when it reentered into talks with Transatlantic.

Transatlantic says it “remains in confidential discussions with other parties regarding potential strategic alternatives,” and that it is “fully committed to reaching a conclusion to this process expeditiously.”