Bloomberg reported that Berkshire Hathaway (NYSE:BRK-A) bid $3.25 billon in an unsolicitated offer for Transatlantic Holdings Inc. (NYSE:TRH), in search of on breaking up a deal the target company had reached with another insurer.
The offer diverges from Buffet's common strategy of staying away from competitive bidding and favoring deals where he has approval of the target company's management. Transatlantic struck a deal in June to combine with Allied World Assurance Company Holdings AG and has turned a bid in July from Bermuda based Vaildus Holdings.
Transatlantic said that its board "will carefully" consider the Berkshire offer.
Transatlantic Holdings (NYSE:TRH) has a potential upside of 11.8% based on a current price of $48.75 and an average consensus analyst price target of $54.5.