Fairfax Financial to Pay More Cash, Less Stock, for Allied World
The increase in the cash component of the offer would reduce the stock consideration of the total deal value, Fairfax said.
The company said on Friday [March 10] it was able to increase the cash component because of a $500 million investment from Alberta Investment Management Corp.
When the announcement to buy Swiss insurer 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.
(Reporting by Vishaka George in Bengaluru)
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