Posted on 22 Aug 2011
Transatlantic Holdings Inc. said Friday it will hold a special meeting of stockholders Sept. 20 to vote on a proposed merger with Allied World Assurance Co.
The announcement comes as Berkshire Hathaway Inc. is said to be negotiating still with Transatlantic on its rival offer to acquire the reinsurer. Validus Holdings Ltd. (VR) has also attempted to thwart the Allied World bid with its own hostile offer.
Terms of the Allied World deal dictate that TransAtlantic must hold the vote and that the board support Allied World's offer unless it gets a "superior proposal."
The Allied World agreement is an all-stock deal that would exchange 0.88 Allied World share--worth about $44.84 based on Friday's closing price--for each TransAtlantic share. Earlier this month, Berkshire formally offered to buy Transatlantic for $52 a share. The Validus offer would give 1.56 Validus shares and $8 in cash--together amounting to about $47.89 based on Friday's closing price--for each Transatlantic share.