(Reuters) — U.S. property and casualty insurer Alleghany Corp. snapped up Transatlantic Holdings for $3.4 billion in cash and stock, a move that may help the Bermuda-based reinsurer ward off a hostile bid from rival Validus Holdings Ltd.
Transatlantic, once controlled by American International Group Inc, had called off a merger with one partner and claimed another bid was too low during the last five months.
Following are some of the key milestones in the battle:
June 12 – Allied World Assurance Co. Holdings agrees to buy Transatlantic for $3.2 billion in stock.
July 12 – Validus offers to buy Transatlantic for about $3.5 billion in cash and stock.
July 18 – Allied World says it is committed to the terms of its all-stock bid for Transatlantic.
July 19 – Transatlantic says it is open to talks with Validus, but sticking for now to existing deal with Allied World.
July 25 – Validus goes hostile with its offer.
July 28 – Transatlantic sues Validus; rejects offer as “inferior and highly conditional”. Adopts poison pill to stop anyone from taking control in the open market.
July 31 – Validus urges Transatlantic to enter into talks; says its offer is superior to Allied World's.
Aug 7 – National Indemnity Co, a unit of Warren Buffett's Berkshire Hathaway Inc, makes a $3.24 billion offer for Transatlantic. Transatlantic's board says it will ”carefully consider and evaluate” the offer.
Aug 8 – Transatlantic spurns National Indemnity bid, saying it does not constitute a superior proposal.
Aug 11 – Validus sues Transatlantic, but offers to open its own books for review.
Aug 12 – Transatlantic opens talks with National Indemnity.
Aug 16 – National Indemnity's offer for Transatlantic expires, but both sides still in talks.
Aug 24 – Transatlantic's largest shareholder says it will oppose the planned acquisition by Allied World.
Sept 11 – Institutional Shareholder Services (ISS) recommends Transatlantic investors vote against the Allied World deal.
Sept 12 – Allied World says ISS recommended its shareholders vote for a deal to buy Transatlantic, contrary to the earlier news that ISS said Transatlantic should reject the offer.
Sept 13 – Barclays Capital cites an Allied World executive as saying the company doubts if its bid for Transatlantic will succeed, after a proxy advisory firm said Transatlantic investors should reject the deal.
Sept 14 – Validus files with regulators to ultimately replace Transatlantic's board of directors.
Sept 16 – Allied World and Transatlantic call off their merger in the face of overwhelming opposition, and Transatlantic indicated it might remain independent despite two higher offers on the table.
Sept 19 – Transatlantic says it received a renewed buyout offer of $52 a share in cash from Buffett's Berkshire Hathaway Inc, but said the bid was too low.
Sept 23 – Transatlantic and Validus sign a confidentiality agreement and will exchange information as a prelude to buyout talks.
Sept 26 – Transatlantic enters into deal talks with an undisclosed bidder.
Oct 11 – Transatlantic says it entered talks and signed a confidentiality agreement with another unnamed suitor. The mystery suitor is Bermuda-based Enstar Group, a person familiar with the situation tells Reuters. Enstar has the backing of one of its largest shareholders, hedge fund manager J. Christopher Flowers.
Nov 3 – Transatlantic says it is looking at an increased takeover offer from Validus Holdings, but advised shareholders to sit tight for now, adding it was in talks with other parties.
Nov 4 – Transatlantic rejects a sweetened bid from Validus, says the offer was still substantially lower than its book value.
Nov 21 – Alleghany says to buy Transatlantic for $3.4 billion in cash and stock.
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