The “go-shop” period under the merger agreement between Alleghany Corporation and Berkshire Hathaway has now ended, meaning the former is now bound by customary “no-shop” restrictions under the definitive merger agreement.
Under the terms of the arrangement, Alleghany and its representatives were allowed to solicit and consider alternative acquisition proposals from third parties until April 14th, 2022.
The company and its financial advisor actually solicited alternative acquisition proposals from 31 potentially interested third parties during the period. However, Alleghany failed to receive any alternative acquisition proposals.
With Alleghany now bound by customary “no-shop” restrictions, the company and its representatives have limits placed on their ability to initiate, solicit or engage in discussions or negotiations regarding alternative acquisition proposals from third parties.
The merger is expected to close in the fourth quarter of 2022, subject to customary closing conditions, including approval by Alleghany stockholders and receipt of regulatory approvals.
It was announced in March that Berkshire Hathaway had reached an agreement to acquire all of the outstanding shares of Alleghany in an $11.6 billion transaction.
Reportedly, Alleghany had sought to counter Warren Buffett’s acquisition offer during negotiations, seeking more than the initial $850 per share price.
