Despite Buffett Claim, Berkshire Is In Takeover Talks -Source
August 16 2011 - 10:49AM
Dow Jones News
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had been withdrawn, according to a person familiar with the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.
Transatlantic (NYSE:TRH)
Historical Stock Chart
From Apr 2024 to May 2024
Transatlantic (NYSE:TRH)
Historical Stock Chart
From May 2023 to May 2024