Berkshire Bids for Transatlantic Holdings

NEW YORK (TheStreet) -- Reinsurer Transatlantic Holdings (TRH) announced Sunday it has received a $3.25 billion buyout offer from National Indemnity Company, a unit of Warren Buffett's Berkshire Hathaway (BRK.A).

In a news release, Transatlantic says National Indemnity is offering $52 for each of its outstanding shares, a 15% premium to Transatlantic's Friday closing price of $45.24.

In June, Transatlantic agreed to merge with Allied World Assurance Company ( AWH). Under the terms of that deal, Transatlantic shareholders would receive 0.88 Allied World shares for each Transatlantic share. Based on Allied World's Friday closing share price of $50.25, that deal values Transatlantic at $44.22 a share, or $2.76 billion.

> > Bull or Bear? Vote in Our Poll

In Sunday's news release, Transatlantic said its board would "carefully consider and evaluate" the proposal from the Berkshire Hathaway unit. "Transatlantic advises stockholders to take no action at this time and to await the Board's recommendation," the release added.

Berkshire's Class-A shares closed Friday's session up $550 at $107,300, while its Class-B shares ended the day up $26 at $71.25.

>> Get your merger and acquisition news on the go with TheStreet's iPad app.

This article was written by a staff member of TheStreet.

More from Stocks

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

3 Great Stock Market Sectors Millennials Should Invest In

3 Great Stock Market Sectors Millennials Should Invest In

Why Millennials Are Ditching Stocks for ETFs

Why Millennials Are Ditching Stocks for ETFs

Trump's 'Space Force' Could Launch a $1 Trillion Industry, Morgan Stanley Says

Trump's 'Space Force' Could Launch a $1 Trillion Industry, Morgan Stanley Says

Abiomed Stock Should Rise Some 12% From Here, Piper Jaffray Analyst Says

Abiomed Stock Should Rise Some 12% From Here, Piper Jaffray Analyst Says