In a nod to a pending offer from a Swiss insurer with Farmington operations, U.S. reinsurance company Transatlantic Holdings Inc spurned a $3.24 billion takeover bid by a unit of Warren Buffett’s Berkshire Hathaway Inc., Reuters reports.
Transatlantic said late Monday the offer does not constitute a superior proposal, even as it left the door open for further negotiations.
In a statement late on Monday, Transatlantic said it will engage in discussions with National Indemnity Co. as the board had determined that Berkshire unit’s proposal “is reasonably likely to lead to a superior proposal.”
Transatlantic’s board had earlier said that it would “carefully consider and evaluate” the $52-per-share offer by National Indemnity.
Transatlantic already has an agreement to be bought by Allied World Assurance Company Holdings Ltd. in a currently worth $44.22 per share, or $2.75 billion.
Also, Validus Holdings Ltd has launched a hostile bid for Transatlantic, with a proposal currently worth $46.36 per share, or $2.89 billion.
