Alleghany shares jump nearly 25% after signing sale deal with Berkshire

Alleghany Corp. shares surged through mid-morning trading on March 21 after Berkshire Hathaway Inc. announced that it is acquiring all of Alleghany's outstanding shares in a deal worth approximately $11.6 billion.

Berkshire said the acquisition price represents a multiple of 1.26x Alleghany's book value as of Dec. 31, 2021, a 29% premium to the target's average stock price over the last 30 days and a 16% premium to Alleghany's 52-week high closing price.

The proposed deal also has a 25-day "go-shop" period, opening the door for additional bidders.

Alleghany's stock was up 24.94% at $844.65 as of 10:43 a.m. ET.