Allied World Assurance Company Holdings AG, with operations in Farmington, said Monday that its deal to combine itself with specialty reinsurer Transatlantic Holdings Inc. is better than a new offer from another company to buy Transatlantic, The Associated Press reports.
In June, New York-based Transatlantic and Switzerland-based Allied World announced plans to combine as part of a deal they described as a merger of equals. They said it would put them on better competitive footing because of the combined company’s larger size.
But on Wednesday, Transatlantic said it received an unsolicited buyout offer from Validus Holdings Inc. and that its board would “carefully consider” the proposal.
Allied World CEO Scott Carmilan, who would head the combined company under the Allied deal, said Monday that Validus’ proposal is “inferior” and said his company’s offer is better financially and strategically and provides the best long-term value.
Under the Allied World deal, Transatlantic shareholders would own a 58 percent stake in the combined company, and it would get to name six of the 11 board members. Carmilan would be CEO, while Transatlantic’s CEO would retire.
