* Buys back $250 mln in shares from GS Capital, other
* Buyback at a 0.5 pct discount to Friday's close
* Goldman affiliates still hold 7.2 pct of Allied World
(Updates with Allied comment)
NEW YORK, Aug 8 Allied World Assurance Holdings
Ltd (AWH.N) said it bought back $250 million worth of stock
from funds affiliated to Goldman Sachs Group Inc (GS.N) that
are its founding shareholders.
Allied World, which provides property, casualty and
specialty insurance and reinsurance, bought back 5 million
shares at $50 per share from GS Capital Partners and other
investment funds affiliated to the Wall Street bank. The
repurchase is at a 0.5 percent discount to the closing price on
An Allied World spokeswoman said the repurchase was not
related to new financial regulatory reform legislation.
Speculation continues to grow as to which Wall Street banks
will be looking to get out of proprietary trading or the
private equity business to comply with new legislation, which
restricts banks from proprietary trading and sets new limits on
the size of private equity or hedge fund investments.
A source familiar with the situation told Reuters
previously that Goldman is likely to reduce its own position in
private equity over time rather than spinning out GS Capital
Partners and other units. (Click on [ID:nN08195624] for
Allied World said the repurchase represents about 9.4
percent of shares outstanding, and leaves the
Goldman-affiliated funds with about 3.2 million non-voting
shares, or 7.2 percent of the shares outstanding.
The buyback was separate from a $500 million share
repurchase program that was authorized by the board in May.
(Reporting by Paritosh Bansal; Editing by Diane Craft)