U.S. property and casualty insurer Alleghany Corp is nearing a deal to purchase Transatlantic Holdings Inc for about $3.4 billion, a source familiar with the matter told Reuters, in the latest twist in a drawn-out battle for the reinsurer.Alleghany is expected to pay $59 per share to $60 per share in cash and stock for Transatlantic, the source said, adding a deal could be announced as soon as Monday.Shares of Transatlantic closed at $54.43 Friday on the New York Stock Exchange. Alleghany's expected offer price would mean a premium of about 8-10 percent over Transatlantic's Friday close.A deal with Alleghany could help Transatlantic ward off rival Validus Holdings Ltd, which has gone hostile in its attempt to buy the company.
Transatlantic Holdings Inc. (NYSE: TRH): traded higher by 5.09% or $2.77/share in pre-market trading to $57.20. In the past year, the shares have traded as low as $43.85 and as high as $54.08. The shares are currently trading above the 50-day moving average which indicates that the shares have been experiencing strong upward momentum as the 50 DMA is above the 200 DMA. The stock may come back down to test the 50-day moving average, so look for a move back to the $49.11 area where the stock will likely see buying pressure.
Validus Holdings, Ltd. provides reinsurance and insurance coverage in the property, marine and specialty lines markets, and insurance coverage. Shares of VR traded higher by 1.31% or $0.37/share to $28.65. In the past year, the shares have traded as low as $23.24 and as high as $34.95. On average, 1201970 shares of VR exchange hands on a given day and today's volume is recorded at 540826.
Alleghany Corporation is engaged, through Alleghany Insurance Holdings LLC (AIHL) and its subsidiaries RSUI Group, Inc. Shares of Y traded higher by 0.57% or $1.79/share to $314.26. In the past year, the shares have traded as low as $278.74 and as high as $342.71. On average, 16470 shares of Y exchange hands on a given day and today's volume is recorded at 6519.
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