Reitmans' shares rise on Fairfax stake disclosure

Mon Dec 23, 2013 9:54am EST
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TORONTO Dec 23 (Reuters) - Shares in Reitmans Canada Ltd rose 4.7 percent in trading on Monday, following an announcement by Fairfax Financial Holdings that it has acquired a sizable stake in the Canadian clothing retailer.

Toronto-based Fairfax, led by contrarian investor Prem Watsa, disclosed late on Friday that it now owns 13.8 percent of Reitman's Class A shares.

Fairfax, which has recently been in the spotlight for its investments in embattled smartphone maker BlackBerry Ltd , did not provide any detail on why it has acquired the stake in the Canadian retailer.

The financial services company, which controls a number of property and casualty insurance companies, said it continually reviews its investment alternatives and may purchase additional shares of Reitmans from time to time.

Shares in Reitmans rose 28 Canadian cents to C$6.65 in early trading on the Toronto Stock Exchange. (Reporting by Euan Rocha; Editing by Chris Reese)