Allied World unsuccessful in finding alternative acquirers in 'go-shop' period

Allied World’s ‘go-shop’period, a period where it actively solicited 31 potentially interested parties for its acquisition, has expired, meaning that it will be acquired by Fairfax Financial.

None of the contacted parties executed a confidentiality agreement or otherwise expressed interest in pursuing a transaction, and no other party proposed an alternative transaction.

Fairfax had announced its proposed acquisition of Allied World on December 18, for the sum of $4.9 billion in cash.

Under terms of the agreement, Allied World and its representative were permitted to solicit and engage in negotiations with respect to alternative acquisition proposals until January 18, 2017.

The CEO of Fairfax had previously cited the influence of incoming US president Donald Trump as being one of the drivers behind the acquisition.

Fairfax’s acquisition of Allied World is anticipated to be completed in the second quarter of 2017 following regulatory and shareholder approvals.