March 10, 2017 / 11:01 PM / a year ago

Fairfax Financial raises cash component of offer for Allied World

March 10 (Reuters) - Toronto-based insurance group Fairfax Financial Holdings Ltd said it would increase the cash component of its offer to buy Allied World Assurance Company Holdings AG 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 on Friday it was able to increase the cash component because of a $500 million investment from Alberta Investment Management Corp.

When the announcemnent 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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