Reinsurer Validus Holdings Ltd. took its $3.2 billion offer to buy Transatlantic Holdings Inc. directly to shareholders on Monday, as it could not agree with its peer’s conditions for merger talks, Reuters reports.
Validus said it was unable to start discussions with Transatlantic because of a “standstill” provision that would have prevented it from pursuing its offer without the approval on Transatlantic’s board.
“Clearly, this is not a condition that we can accept, and your position causes us to question whether your overture of last week was genuine,” Validus Chief Executive Edward Noonan told Transatlantic’s board in a letter.
Transatlantic, which is currently in the midst of a takeover battle between Validus and Allied World Holdings, had agreed to talks with Validus but said it still considered Allied World’s offer a better deal.
Allied World, which has operations in Farmington, made its all-stock offer for Transatlantic in June, though Transatlantic shareholders opposed the deal as too cheap. Validus came in on July 12 with a higher cash-and-stock offer and a promise to take the bid directly to shareholders if Transatlantic did not accept it.
Validus began its exchange offer to buy Transatlantic’s stock. The offer will end on Sept. 30, unless extended.
