Fairfax Said in Talks With OMERS to Back Takeover

Fairfax Said in Talks With OMERS to Back Takeover

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Business

University

Hard

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Fairfax is in discussions with Canadian pension fund OMERS to secure $3 billion in financing for its largest acquisition in history, a $4.9 billion deal to acquire Allied World Assurance. Fairfax aims to avoid additional debt to maintain its credit rating and is seeking partners like OMERS and CI Investments to fund the transaction. The company is cautious about its debt rating, which is currently the lowest investment grade by S&P Global, and wants to avoid being downgraded to junk status.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the primary reason Fairfax is seeking $3 billion in financing?

To pay off existing debts

To fund their largest acquisition in history

To invest in new technology

To expand their operations globally

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is Fairfax reaching out to partners like OMERS?

To expand into new markets

To increase their market share

To avoid diluting their shares

To improve their product offerings

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What risk does Fairfax face if they take on more debt?

Experiencing a drop in stock prices

Facing legal challenges

Being downgraded to junk status

Losing key partners

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why is OMERS considered a safe partner for Fairfax?

They are the largest pension fund globally

They offer the lowest interest rates

They have a strong presence in the technology sector

They have a history of successful collaborations

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Besides OMERS, which other partner is mentioned as a potential collaborator with Fairfax?

BlackRock

CI Investments

Vanguard

Brookfield Asset Management