Validus agrees confidentiality deal with Transatlantic
Bermuda-based Validus Holdings Ltd has a agreed a confidentiality agreement with US reinsurer Transatlantic Holdings, Inc.
The deal clears the way for Validus, which made a takeover bid of $47.41 per share for Transatlantic last month, to exchange non-public information with its takeover target during negotiations between the two over the next month.
The agreement runs through October 31 and under the agreed terms, Validus and Transatlantic have called a truce in their pending legal battle in the Delaware courts.
Also Validus agreed to suspend its efforts to acquire more Transatlantic stock or to solicit support from the US firm’s shareholders until the agreement expires.
The news comes after Transatlantic last week rejected a $3.25 billion bid from Warren Buffett’s Berkshire Hathaway and also announced the termination of its agreement to merge with Allied World Assurance Company.
Shares of Transatlantic shot up 3.7 percent on Friday to $46.65. The agreement was announced after the close of regular trading.