This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Transatlantic Rebuffs Buffett

NEW YORK ( TheStreet) -- Reinsurer Transatlantic Holdings (TRH) received once more a $52 per share bid from Berkshire Hathaway's (BRK.A) National Indemnity subsidiary, but the offer was quickly dismissed as not "fairly" valuing the company

National Indemnity reinstated its earlier offer to acquire the company, a bid that has already been rejected by Transatlantic as too low relative to its estimated book value of $69 to $70. The renewed bid from Berkshire comes after Transatlantic's proposed merger with Allied World Assurance (AWH - Get Report) fell through last week.
Warren Buffett

"The Transatlantic Board of Directors believes that selling Transatlantic for cash at the substantial discount to book value represented by the National Indemnity proposal simply would not deliver fair value to its stockholders," the company said in a statement Monday. "National Indemnity has neither increased its opportunistic $52 per share proposal nor shown interest in conducting full due diligence or holding discussions that could lead to a higher offer."

Transatlantic and Allied World "mutually agreed" to call off their merger last week after it became clear that a majority of the shareholders of Transatlantic would vote against the deal. That left it open to bids from National Indemnity and rival firm, Validus (VR - Get Report), which has been attempting a hostile stock-and-cash takeover since July.

Transatlantic Chairman Richard Press said Friday that the Berkshire company's $3.25 billion offer was "demonstrably inferior" on most valuation metrics and "less compelling" than the bid from Validus and the Allied World merger.

National Indemnity has, however, given Transatlantic only till the end of the day to accept the terms of the agreement, after which the proposal would be permanently withdrawn.

"I believe, and hope you agree, that this timeframe is reasonable given the substantial time period you and the Board have had to consider my earlier letter, even though for technical reasons you may not have been in a position at that time to be more forthcoming in responding to us," National Indemnity President Ajit Jain wrote in a letter to Transatlantic's CEO.

Shares of Transatlantic were down 1.4% at $47.95 in early Monday trading.

--Written by Shanthi Bharatwaj in New York

>To contact the writer of this article, click here: Shanthi Bharatwaj.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AWH $35.58 0.00%
VR $46.09 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs