Reinsurer Validus Holdings Ltd
Validus offered to buy Transatlantic on Tuesday, trumping a $3.06 billion stock deal that Transatlantic has already signed with rival Allied World Assurance Co Holdings.
Bermuda-based Validus said it believes its bid would create more than the $80 million in synergies touted by Allied World and Transatlantic. It said it would seek to retain the Transatlantic management team.
It also said it projects that the combination would create a better spread of risk for Validus and increase the combined company`s excess capital by over $500 million.
Validus said the deal would create $1.1 billion of pre-synergy, precatastrophe earnings power available for share repurchases. The company's currently has $382.0 million remaining in its share repurchase program.
Validus shares closed at $28.25 on the New York Stock Exchange on Sunday. They are down more than 8 percent since the company announced the Transatlantic bid.
(Reporting by Michael Erman)