$3B Alterra Sale Shortchanges Investors, Suit Says

Law360, Los Angeles (February 8, 2013, 8:28 PM EST) -- Alterra Capital Holdings Ltd. shareholders launched a putative class action Friday challenging the insurance company’s proposed $3.13 billion sale to fellow insurer Markel Corp., claiming Alterra undervalued itself in the deal.

The Louisiana Municipal Police Employees Retirement System alleges Markel and 12 Alterra directors violated federal securities laws and the Bermuda Companies Act by pursuing an unfair sales process meant to discourage other potential suitors. The suit also says the defendants misled investors when Alterra filed a deceptive regulatory statement aimed at winning shareholder votes in...
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