NEW YORK ( TheStreet) -- Reinsurance firm Validus ( VR) announced a $3.5 billion proposal to buy reinsurance company Transatlantic Holdings ( TRH) in a bid "superior" to the $3.2 billion offer from Allied World Assurance ( AWH), the company said.

Validus said its $55.95 a share offer represents a 12.1% premium to the value of Transatlantic's previously announced proposed acquisition by Allied World as of July 12 and 14.1% premium to Transatlantic's July 12 closing price.

Validus shares were falling 1.2% to $30.44 in premarket trading Wednesday, while Transatlantic shares were surging by 8% to $52.95.

Kinetic Concepts ( KCI), a provider of hospital beds, said Wednesday it agreed to be acquired by funds advised by Apax Partners, and affiliates of Canada Pension Plan Investment Board and the Public Sector Pension Investment Board, for $68.50 a share in cash, or $6.3 billion including debt.

Shares were popping 4.9% to $67.64.

Ending weeks of speculation, Electronic Arts ( ERTS) announced Tuesday that it bought PopCap Games, the maker of popular smartphone games like Bejeweled and Plants vs. Zombies. The deal went down for about $750 million.

Shares of Electronic Arts were falling 3.9% to $23.23.

Hotel chain Marriott International ( MAR) is expected to report second-quarter profit of 37 cents a share after the markets close Wednesday. The company reported profit of 31 cents a share a year ago.

Shares were rising 2.4% to $37.70.

Capital One Financial ( COF) reported second-quarter profit of $1.97 a share vs. $1.33 a share a year ago. Analysts, on average, were expecting the company to report profit of $1.71 a share.

The company also announced plans for a $2 billion stock offering.

Capital One shares were ticking down 0.8% to $51.80 after spiking.

Bank of America's ( BAC) $8.5 billion settlement with investors over mortgage-backed securities that went bad is being investigated by New York's attorney general.

Shares were rising 0.7% to $10.28.

Food giant General Mills ( GIS) is expected to issue a fiscal 2012 outlook on Wednesday.

Shares were up 0.4% to $37.19.

Restaurant company Yum! Brands ( YUM) is expected to report second-quarter profit of 61 cents a share after the markets close Wednesday. The company reported profit of 58 cents a share a year ago.

Shares were up 0.3% to $55.37.

Gilead ( GILD) drugs prevent HIV infections, according to two new studies.

-- Written by Andrea Tse in New York.

>To contact the writer of this article, click here: Andrea Tse.

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