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Validus revises IPO to raise additional capital

Posted On: Jun. 5, 2007 12:00 AM CST

HAMILTON, Bermuda--Reinsurer Validus Holdings Ltd. is seeking to raise $150 million of additional capital, having revised on Tuesday its total maximum initial public offering to $350 million.

In an amended prospectus statement filed with the U.S. Securities and Exchange Commission, Hamilton, Bermuda-based Validus said it intends to use net proceeds from the IPO to partly fund its acquisition of Talbot Holdings Ltd.

Validus last month announced plans to buy Talbot, the Bermudian parent company for the specialty insurance group operating within Lloyd's of London syndicate 1183.

"We intend to use the remainder of the net proceeds to further capitalize Validus Re to support the future growth of our reinsurance operations and for general corporate purposes, which will include a $3.0 million payment to Aquiline in connection with the termination of our advisory agreement with them," Validus said in the statement.

New York-based Aquiline Capital Partners L.L.C., a private equity firm headed by Jeffrey W. Greenberg, was the founding investor and sponsor of Validus.Calls to Validus and Aquiline were not immediately returned.