Fairfax raises cash component of offer for Allied World
(Reuters) — Toronto-based insurance group Fairfax Financial Holdings Ltd. said on Friday that it would increase the cash component of its offer to buy Allied World Assurance Co. Holdings A.G. by $18 per share.
The increase in the cash component of the offer would reduce the stock consideration of the total deal value, Fairfax said.
The company said it was able to increase the cash component because of a $500 million investment from Alberta Investment Management Corp.
When the announcement to buy Allied World was made in December, Fairfax had said it would pay $54 per share — $10 in cash and $44 in Fairfax stock — for a total of $4.9 billion.
Fairfax on Friday said it would raise the cash consideration of the offer to $28 per share, including a $5 special dividend.
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