Fairfax’s Proposed $4.9 Billion Acquisition of Allied World

Shearman & Sterling is advising Fairfax Financial Holdings Limited on its proposed acquisition of Allied World Assurance Company Holdings, AG.

Fairfax is a holding company which, through its subsidiaries, is engaged in property and casualty insurance and reinsurance and investment management. Allied World, through its subsidiaries and brand known as Allied World, is a global provider of innovative property, casualty and specialty insurance and reinsurance solutions.

Under the terms of the agreement, Allied World shareholders will receive a combination of Fairfax shares and cash equal to $54.00 per Allied World share, for a total equity value of approximately $4.9 billion. The $54.00 per share offer price represents a premium of 18% to the closing price of $45.77 per Allied World share on December 16, 2016. The transaction has been unanimously approved by the boards of directors of both companies.

The combination of Fairfax and Allied World creates a world leader in property and casualty insurance, reinsurance and investments. The deal is expected to be completed in the second quarter of 2017, subject to customary closing conditions.

The Shearman & Sterling team was led by partners Scott Petepiece (Picture) (New York-Mergers & Acquisitions) and George Karafotias (London-Mergers & Acquisitions); counsel Sean Skiffington (Toronto-Mergers & Acquisitions); and associate Richard Fischetti (New York-Mergers & Acquisitions). The team also included partners Jason Lehner (Toronto-Capital Markets), Larry Crouch (Menlo Park-Tax), Doreen Lilienfeld (New York-Compensation, Governance & ERISA), Alan Goudiss (New York-Litigation), Jessica Delbaum (New York-Antitrust) and Jordan Altman (New York-Intellectual Property Transactions); counsel Kevin Roggow (Toronto-Capital Markets); and associates Robert Bucella (New York-Mergers & Acquisitions), Cecilia Ferreira (London-Mergers & Acquisitions), Dillon Smith (New York-Corporate), Ryan Bray (Menlo Park-Tax), Heather Pals, Ryan Robski (both Toronto-Capital Markets), Aleksandra Petkovic (New York-Antitrust) and Matthew Weston (New York-Compensation, Governance & ERISA).

Walder Wyss acts as legal counsel to Allied World on this transaction with a team led by Urs Schenker (Counsel, Corporate/M&A) and Alex Nikitine (Partner, M&A, Capital Markets) and further included Thomas Meister (Partner, Tax), Markus Pfenninger (Partner, Insurance, Capital Markets), Sarah Schulthess (Associate, M&A, Capital Markets) and Janine Corti (Associate, Tax).

Involved fees earner: Urs Schenker – Walder Wyss Ltd.; Sarah Schulthess – Walder Wyss Ltd.; Alexander Nikitine – Walder Wyss Ltd.; Markus Pfenninger – Walder Wyss Ltd.; Thomas Meister – Walder Wyss Ltd.; Janine Corti – Walder Wyss Ltd.; Scott Petepiece – Shearman & Sterling; George Karafotias – Shearman & Sterling; Sean Skiffington – Shearman & Sterling; Richard Fischetti – Shearman & Sterling; Robert Bucella – Shearman & Sterling; Cecilia Ferreira – Shearman & Sterling; Dillon Smith – Shearman & Sterling; Jason Lehner – Shearman & Sterling; Kevin Roggow – Shearman & Sterling; Heather Pals – Shearman & Sterling; Ryan Robski – Shearman & Sterling; Laurence Crouch – Shearman & Sterling; Ryan Bray – Shearman & Sterling; Doreen Lilienfeld – Shearman & Sterling; Matthew Weston – Shearman & Sterling; Alan Goudiss – Shearman & Sterling; Jessica Delbaum – Shearman & Sterling; Aleksandra Petkovic – Shearman & Sterling; Jordan Altman – Shearman & Sterling;

Law Firms: Walder Wyss Ltd.; Shearman & Sterling;

Clients: Fairfax Financial; Allied World Assurance;