S&P: Validus unchanged

Standard & Poor's said the ratings on Validus Holdings Ltd. are unchanged following the insurance company's unsolicited offer to combine with Transatlantic Holdings Inc. in response to the definitive merger agreement between Transatlantic and Allied World Assurance Co. Holdings AG.

If the offer prevails, the agency said it expects Validus will become the surviving entity because the combined group will be domiciled in Bermuda.

The merger contemplates Transatlantic shareholders owning 48% of the combined company, with Validus' shareholders owning the remaining 52% and completion of the deal by year-end 2011, S&P said.

Although the agency said it doesn't plan an immediate rating action on these companies as a result of the offer, S&P said it will continue to monitor developments and could place the ratings on both Validus and Transatlantic on CreditWatch if the offer succeeds.

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