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Member, Beacon International Group, Ltd.
NEW YORK (Reuters)—The largest shareholder in reinsurer Transatlantic Holdings Inc. will oppose the company's acquisition by Allied World Assurance Co. Holdings A.G., opening the door to two other suitors.
Davis Selected Advisers L.P., which owns 23.6% of Transatlantic, previously said it might oppose the deal, which was announced in June.
“Davis Advisers believes that the current offer from Allied World Assurance Co. Holdings is not in the best interest of maximizing value for shareholders,” the company said in a Wednesday filing with the U.S. Securities and Exchange Commission.
Because of an agreement with New York insurance regulators, the firm can only vote a 9.9% stake freely and has to vote its remaining shares in proportion to the votes of other shareholders.
An Allied World spokeswoman could not immediately comment on the filing. A Transatlantic spokesman declined to comment.
Davis Selected Advisers has not said anything publicly about the other two bids—a hostile offer from Validus Holdings Ltd. and an unsolicited offer from Berkshire Hathaway Inc.
Validus has taken its offer directly to shareholders, while Transatlantic and Berkshire are in negotiations.
At Wednesday's closing prices, the Allied World all-stock offer was worth $2.9 billion, while the Validus cash-and-stock offer was worth $2.99 billion and the Berkshire Hathaway all-cash offer was worth $3.25 billion.
The deal has become very contentious, with Transatlantic and Validus suing each other and Transatlantic shareholders suing the company as well.
ZUG, Switzerland—Allied World Assurance Co. Holdings A.G. and Transatlantic Holdings Inc. will hold shareholder meetings Sept. 20 to vote on their merger agreement, the companies announced.