Fairfax Said in Talks With OMERS to Back Takeover

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.

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

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

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

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

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

• BlackRock

• CI Investments

• Vanguard

• Brookfield Asset Management