Berkshire Hathaway Inc. (BRKA, BRKB) is continuing to negotiate with Transatlantic Holdings Inc. (TRH) despite a claim by Warren Buffett Monday that Berkshire's $3.25 billion bid for the reinsurer had been withdrawn, according to a person familiar with the negotiations.

The talks with Buffett lieutenant Ajit Jain continue, the person said. Jain formally offered to acquire Transatlantic for $52 a share on Aug. 5, but gave the company just three days to accept.

Buffett, in an appearance on the Charlie Rose talk show Monday, said, "that offer's expired now."

"We made an offer about a week ago," said Buffett, who serves as Berkshire's chairman and chief executive. "We don't leave things out."

Last week, Transatlantic said it had begun discussions with a Berkshire unit called National Indemnity about the takeover offer. It said National Indemnity's bid wasn't a "superior" offer to an earlier agreement it made with rival Allied World Assurance Co. (AWH), but could lead to a better offer.

The Allied World merger, a stock-for-stock deal, is currently valued at about $2.9 billion. A hostile offer from a third bidder, Validus Holdings Ltd. (VR), is valued at roughly $3 billion.

The statement from Buffett may be posturing to try to secure a good deal for Berkshire. But it may not be welcomed by Transatlantic shareholders, who must first vote to reject the Allied World offer if they want to accept the Berkshire bid.

Transatlantic shares fell 1.3% to $50.75 in morning trading amid broad declines for financial stocks.

   -By Erik Holm, Dow Jones Newswires; 212-416-2892; 
   erik.holm@dowjones.com

--Gina Chon contributed to this article.

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