Alleghany Corp is nearing a deal to buy reinsurer Transatlantic Holdings Inc for about $3.4 billion, a source familiar with the matter said.

Alleghany is expected to pay $59 per share to $60 per share in cash and stock for Transatlantic, the source said.

Former Berkshire Hathaway insurance executive Joseph Brandon is expected to join Alleghany's management team as part of the deal, the source said.

Brandon had earlier been working with Morgan Stanley on a possible bid.

The deal, which was previously reported by Bloomberg, is expected to be announced on Monday.

Davis Selected Advisors, Transatlantic's largest shareholder, is supportive of the deal, the source said

Transatlantic called off a deal with rival Allied World Assurance Co Holdings Ltd in September after it became the subject of a bidding war.

Alleghany and Transatlantic Holdings could not immediately be reached for comment by Reuters outside regular U.S. business hours. (Reporting by Paritosh Bansal, Additional reporting by Sakthi Prasad; Editing by Muralikumar Anantharaman)