Transatlantic Holdings Inc. (TRH) on Friday said Berkshire
Hathaway Inc. (BRKA, BRKB) unit National Indemnity Co. has signed
off on a confidentiality agreement that will likely heat up
competition for the reinsurer.
The move is significant given Berkshire's reputation for disdain
of bidding wars over companies. Transatlantic called the terms of
its arrangement with National Indemnity "substantially similar" to
its confidentiality agreement with another bidder, Allied World
Assurance Co. (AWH), including a customary standstill
provision.
The reinsurer had already agreed in June to a stock-for-stock
deal currently worth about $3 billion with Allied World. As part of
that merger agreement, Transatlantic had to wait three business
days from its response to the offer before it could begin talks
with National Indemnity.
Transatlantic on Monday said National Indemnity's offer of $52 a
share was likely to lead to a "superior proposal" to its existing
merger agreement with a competitor, but wasn't itself a superior
proposal.
Transatlantic shares were recently off a penny at $50.12 after
hours. Berkshire's B shares were up 0.4% at $71.55.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com