U.S. property and casualty insurer Alleghany Corp said it would purchase reinsurer Transatlantic Holdings for $3.4 billion in cash and stock, a day after a source told Reuters that Alleghany was close to a deal for the company.Under the terms of the deal, Transatlantic shareholders will receive $14.22 in cash and 0.145 Alleghany shares for each share, for a total value of $59.79 per share.The price is at a premium of about 10 percent over Transatlantic's Friday close of $54.43 on the New York Stock Exchange.Alleghany was expected to pay $59-$60 per share in cash and stock for Transatlantic, a source had told Reuters.
Transatlantic Holdings, Inc. (TRH) is a holding company. Shares of TRH remained unchanged at $54.43. In the past year, the shares have traded as low as $43.85 and as high as $54.08. On average, 1087640 shares of TRH exchange hands on a given day and today's volume is recorded at 0.
Alleghany Corporation is engaged, through Alleghany Insurance Holdings LLC (AIHL) and its subsidiaries RSUI Group, Inc. Shares of Y remained unchanged at $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 0.
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