(Reuters) - Reinsurer Transatlantic Holdings TRH.N, which rejected a takeover offer from Warren Buffett’s Berkshire Hathaway (BRKa.N), is exploring a “limited standstill” agreement with Validus Holdings VR.N, the Wall Street Journal said, citing people familiar with the matter.
Transatlantic would like to see if Validus agrees to certain terms as a condition of seeing Transatlantic’s financial books, the Journal said.
Standstill agreements restrict potential deal suitors from certain activities.
On Friday, Transatlantic and Allied World Assurance Co Holdings Ltd AWH.N called off their planned merger in the face of overwhelming opposition.
A hostile offer for the company remains on the table from Validus Holdings. Validus has taken its offer directly to Transatlantic shareholders and has taken steps to replace Transatlantic’s board.
However, in order to close a deal, Validus would likely need to increase its current cash-and-stock offer, valued Monday at about $2.9 billion, the people told the Journal.
Transatlantic could not immediately be reached by Reuters for comment outside regular U.S. business hours.
Reporting by Sakthi Prasad in Bangalore; Editing by Vinu Pilakkott