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Reinsurer Transatlantic rejects Validus' increased bid


NEW YORK—Transatlantic Holdings, Inc.'s board on Friday rejected Validus Holdings Ltd.'s increased bid to buy the New York-based reinsurer, saying that it was still too low.

The rejection came a day after Validus said it would raise the cash component of its offer by between $3 and $5 per share, depending on the extent to which Transatlantic stops its planned share buybacks. Pembroke, Bermuda-based Validus said in July that it would pay 1.5564 of its shares plus $8 per share in exchange for one Transatlantic share.

“We strongly urge Transatlantic stockholders to reject Validus’ revised exchange offer, which still fails to adequately reflect our current financial position and future growth prospects,” Richard S. Press, chairman of Transatlantic’s board, said in a statement. The offer values Transatlantic at 75% of its book value, the company said.

“The Transatlantic board’s formal rejection of Validus’ increased offer is not in the best interest of its stockholders,” Validus Chairman and CEO Edward J. Noonan said in a statement Friday. “Transatlantic’s ill-advised and questionable pursuit of an alternative theoretical transaction, a third party-sponsored runoff, a minority investment from a third party or a ‘go it alone’ approach, presents significant risks and delays as compared to a Validus transaction.”

Transatlantic said Friday that it remains in discussions with two other parties regarding potential strategic alternatives.

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