SAN DIEGO, June 20, 2011 (GLOBE NEWSWIRE) -- The Shareholders Foundation, Inc. announces that a lawsuit has been filed in State Court on behalf of current investors in the Transatlantic Holdings, Inc. (NYSE:TRH) over alleged breaches of fiduciary duties arising out of the attempt to sell the Transatlantic Holdings too cheaply to Allied World Assurance Company Holdings, AG.
Those who currently are investors in shares of the Transatlantic Holdings, Inc. (NYSE:TRH) and purchased their shares before June 12, 2011, should contact the Shareholders Foundation, Inc. by e-mail at mail@shareholdersfoundation.com or call +1 (858) 779-1554.
On Sunday, June 12, 2011, Transatlantic Holdings, Inc. (NYSE:TRH) and Allied World Assurance Company Holdings, AG (NYSE:AWH) announced the signing of a merger agreement.
The transaction is valued at $3.2 billion and is structured as a merger of equals, with shareholders of Transatlantic Holdings, Inc. receiving 0.88 Allied World Assurance Company Holdings, AG common shares for each Transatlantic common share held. Based on a closing price of $58.07 per Allied World Assurance Company Holdings, AG (NYSE:AWH) share stockholders in Transatlantic Holdings, Inc. (NYSE:TRH) would receive $51.10 per TRH share they hold.
However, the plaintiff alleges the offer is far too low and does not adequately value Transatlantic Holdings shares. In fact, shares of Transatlantic Holdings, Inc. (NYSE:TRH) traded as recently as February 2011 over $52 per share and during March as high as $51.30 per share. Furthermore TRH stock reached as high as $54 per share last November.
Two other large shareholders in Transatlantic Holdings, Inc. last week also said that they do not agree with the offered price.
Additionally Transatlantic Holdings performance has been increasing lately. Transatlantic Holdings reported between 2007 and 2010 relatively consistent 12months Total Revenue ranging from $4.082billion to $4.445billion. Its Net Income rose from $102.25million in 2008 to $402.20million in 2010. For the first quarter in 2011 Transatlantic Holdings, Inc. reported an increase in its first quarter Revenue from $1.103billion for the first quarter in 2010 to $1.117billion for the first quarter in 2011.
Those who currently are investors in shares of Transatlantic Holdings, Inc. (NYSE:TRH) and purchased their shares before the announcement, should contact the Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio legal monitoring service and an investor advocacy group which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.
CONTACT: Shareholders Foundation, Inc. Trevor Allen +1 (858) 779-1554 mail@shareholdersfoundation.com 3111 Camino Del Rio North Suite 423 San Diego, CA 92108
