NU Online News Service, July 18, 2:16 p.m. EDT
Allied World Assurance Co. Holdings and Validus Holdings continue the back-and-forth fight to acquire Transatlantic Holdings.
Over the weekend Validus sent Transatlantic more information in a further attempt to convince the company’s board 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 international reinsurer, Transatlantic.
Today from Switzerland, Allied World says it “remains fully committed” to the agreed terms of its proposed merger deal to form a new company with Transatlantic called TransAllied.
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 reinsurer operating in 18 countries and on six continents.
In a report from Keefe, Bruyette & Woods, the consulting firm says that the proposed Allied World-Transatlantic merger does not appear to be a signal of increased activity in the merger and acquisition arena—but the deal in itself is considered a potent combination.
Merging Validus, a leader of the short-tail reinsurance market, with Transatlantic, a leader of the long-tail market, will create a company “properly balanced to manage the reinsurance underwriting cycle,” argues Ed Noonan, chairman and CEO of Validus.
Transatlantic says it will hold a special meeting of its stockholders on July 22 to vote on the proposal from Allied World
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