Skadden Reps Validus In $623M Cash, Stock Deal For Reinsurer

Law360, New York (August 30, 2012, 12:26 PM EDT) -- Bermuda-based reinsurance company Validus Holdings Ltd. will buy a Luxembourg-based reinsurer for $623.2 million in a cash-and-stock merger, both companies announced Thursday.

Validus will pay Flagstone Reinsurance Holdings SA stockholders $2 in cash and a 0.1935 share of Validus for each share of Flagstone that they own. The offer gives Flagstone stakeholders a 19.4 percent premium on their existing holdings and $8.43 of value per Flagstone share based on the closing price of both companies Wednesday, the reinsurers said.

Shares of Validus rose 0.24 percent to...
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