Alleghany buying Transatlantic in $3.4B deal

[November 21, 2011]  NEW YORK (AP) -- Property and casualty insurer Alleghany Corp. has agreed to buy the insurer Transatlantic Holdings Inc. in a cash-and-stock deal valued at about $3.4 billion.

The companies say the deal values Transatlantic at about $59.79 per share. That's a 10 percent premium to the company's $54.43 Friday closing stock price.

New York-based Transatlantic had been courted by several businesses, receiving takeover offers from Validus Holdings Ltd. and a unit of Warren Buffett's Berkshire Hathaway Inc., National Indemnity Corp. It also said in October that it had started confidential talks with an unnamed party.

In the deal with Alleghany, Transatlantic stockholders will receive 0.145 shares of Alleghany and $14.22 in cash for each share they own.

The companies say the deal announced Monday is expected to close early next year.

[Associated Press]

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