Transatlantic Rejects $3.25 billion Offer from National Indemnity

After a mutual termination of the agreement held between Transatlantic Holdings, Inc. and Allied World Assurance Company Holdings was announced on Friday, Berkshire Hathaway member National Indemnity Company resent their unsolicited $3.25 billion offer to purchase Transatlantic.

Transatlantic’s Board of Directors reiterated their opposition to the overture, which would pay $52 per share for the New York-based reinsurer, a 25% discount considering the estimated book value per share for Transatlantic at the end of the third quarter sits at $69-$70. Transatlantic’s Board of Directors persists that this would not provide the value to their stockholders they are looking for.

Meanwhile, though the two companies remain under a confidentiality agreement, National Indemnity showed no willingness to enter negotiations where the rate of purchase could be increased or further compromise could be reached.