Robbins Umeda LLP Is Investigating the Acquisition of Transatlantic Holdings, Inc.
Robbins Umeda LLP, a shareholder rights litigation firm, is interested in helping shareholders of Transatlantic Holdings, Inc. (NYSE: TRH). The firm has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by members of the board of directors of Transatlantic in connection with their efforts to sell the company to Allied World Assurance Company Holdings, AG (NYSE: AWH).
On June 12, 2011, Transatlantic and Allied World announced they signed a definitive merger agreement. The combined company will operate under a holding company structure with the corporate name TransAllied Group Holdings, AG. The transaction is expected to close in the fourth quarter of 2011.
The investigation focuses on whether Transatlantic’s board is undertaking a fair process to obtain maximum value and adequately compensate its shareholders in light of the company’s recent strong results and historical stock price. On April 26, 2011, Transatlantic reported results for the first quarter of fiscal year 2011 that beat analyst expectations. The company reported better than expected earnings, as well as higher than expected revenue of $1.12 billion versus $1.09 billion. Moreover, at least five analysts have price targets ranging from $53.00 to $60.00, all higher than the offer price. Indeed, the company has traded over the offer price as recently as April 7, 2011.
Further, a number of the company’s fiduciaries are set to having continuing roles at the post-acquisition company. For instance, Mike Sapnar, Executive Vice President and Chief Operating Officer of Transatlantic, will serve as President and Chief Executive Officer, Global Reinsurance. Sapnar will serve on the combined company’s board, which have eleven seats, six appointed by Transatlantic. Richard Press, Transatlantic’s non-executive Chairman, will serve as the non-executive Chairman of the board or the combined company for the first year following the closing of the merger.
If you own stock in Transatlantic and would like more information about your shareholder rights, please complete the form below and we will contact you directly. We also welcome you to call us at 800-350-6003.