Transatlantic Calls Off Allied Deal, Replaces CEO

Law360, New York (September 16, 2011, 1:33 PM EDT) -- Faced with opposition from a powerful shareholder, an attack on its board and competing bids, Transatlantic Holdings Inc. on Friday called off its planned $3 billion stock-for-stock merger with fellow reinsurer Allied World Assurance Co. and replaced its CEO.

Zug, Switzerland-based Allied World will receive a termination fee of $35 million, plus $13.3 million for merger-related expenses. Transatlantic also must pay Allied World $66.7 million if it enters into a competing merger agreement within a year, the companies said.

“Although disappointed we were unable to complete the...
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