HAMILTON, Bermuda ( TheStreet) -- Max Capital ( MXGL) will merge with fellow reinsurer Harber Point and be renamed Alterra Capital Holdings.

The combined company will trade on Nasdaq under symbol "ALTE."

Harbor Point shareholders will receive 3.7769 Max Capital shares for each Harbor Point share owned under the merger agreement, which was described as a merger of equals.

Once the deal closes, the combined company plans to issue a special cash dividend of $2.50 a share, for a total of about $300 million.

Harbor Point shareholders will own about 52% of the combined company, with Max Capital shareholders owning about 48%.

The transaction is expected to close in the second quarter.

Shares of Max Capital Wednesday rose 13 cents in after-hours trading to $24.40.

-- Reported by Joseph Woelfel in New York.

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