Allied World Assurance Company shares rose to their highest level ever on Monday after the insurance provider said that it has reached an agreement to be acquired by Toronto-listed Fairfax Financial Holdings Limited in a cash-and-stock transaction valued at $4.9 billion. AWH was up 12% at $51.28 recently, trading in a new 52-week range between $30.29 and $52.03.
Under the terms of the deal, Allied World shares would be exchanged for $10 in cash and $44 in Fairfax common stock. The purchase price is an 18% premium to the closing price of Allied World on Dec. 16. The transaction is expected to close in Q2 2017, subject to regulatory and other customary closing conditions.
By Marvin Goff