Validus to buy Flagstone Re for $600 mln in cash and stock

Thu Aug 30, 2012 8:15am EDT

Aug 30 (Reuters) - Reinsurer Validus Holdings Ltd said it will buy Flagstone Reinsurance Holdings for about $600 million in cash and stock.

Validus will pay $8.43 per Flagstone share, a 19 percent premium to the stock's Wednesday close. Flagstone shareholders will receive $2 in cash and 0.1935 Validus shares for each share they tender in the offering.

The deal comes aftr Validus unsuccessfully tried to buy Transatlantic Holdings last year. Transatlantic's board, which had repeatedly rebuffed Validus, accepted a $3.4 billion stock-and-cash deal from property and casualty insurer Alleghany Corp.

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