Alleghany Corporation (NYSE: Y) (“Alleghany”) and Transatlantic Holdings, Inc. (“Transatlantic”) today announced the closing of their previously announced combination, creating a leading franchise across specialty insurance and reinsurance lines. With the closing of the transaction, Transatlantic becomes an operating subsidiary of Alleghany, and is expected to increase Alleghany’s breadth of distribution, diversify its underwriting activities and add to its financial strength and flexibility.
Pursuant to the terms of the merger agreement signed on November 20, 2011, former Transatlantic stockholders are entitled to receive, for each share of Transatlantic common stock held, either shares of Alleghany common stock or cash consideration with a value equal to $61.14, which is the sum of (i) 0.145 multiplied by the average of the closing sales prices on the NYSE for Alleghany common stock during the five trading days ending the day before the completion of the merger and (ii) $14.22. In addition, the Alleghany Board of Directors has been expanded to include former Transatlantic directors Stephen P. Bradley, Ian H. Chippendale and John G. Foos. Current Transatlantic President and CEO Michael C. Sapnar will continue to serve in that capacity. In connection with the transaction, reinsurance industry veteran Joseph P. Brandon has been appointed as President of Alleghany Insurance Holdings LLC, Executive Vice President of Alleghany and Chairman of Transatlantic’s Board.
The closing follows the satisfaction of all conditions to closing of the merger, including receipt of certain regulatory approvals and receipt of approval of the transaction by Alleghany and Transatlantic stockholders, which stockholder approvals were obtained on February 6, 2012.
Weston M. Hicks, President and CEO of Alleghany commented on the transaction’s closing, stating, “I am very pleased to welcome Transatlantic into the Alleghany family. Together we expect to have the flexibility to allocate our capital to the highest risk-adjusted return opportunities in insurance and reinsurance. I believe that our similar cultures, values and objectives will help ensure a seamless transition.” Mr. Hicks continued, “I am especially pleased to welcome Joe Brandon and Mike Sapnar to our leadership ranks, and I expect their talents, insights and industry relationships will contribute greatly to our efforts to manage Alleghany’s growing reinsurance operations.”
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV