Canadian Firm Buys Zenith Insurance

Toronto-based holding company Fairfax Financial Holdings Limited has bought Woodland Hills-based Zenith National Insurance Corp. in a deal valued at $1.4 billion. Zenith shareholders will receive $38 per share, a figure that reflects a 31 percent gain over the equity’s floor price the day before the acquisition announcement was made. Fairfax will acquire all of the outstanding shares of Zenith common stock, which it does not currently own. The transaction is expected to close in the second quarter of 2010. Zenith will continue to operate from its Woodland Hills headquarters, but will become a wholly owned subsidiary of Fairfax. Strategic or operational changes are not expected. “We believe the transaction will benefit our key constituents and enable our shareholders to realize compelling value for their investment in Zenith,” said company Chairman and Chief Executive Officer Stanley Zax. “We admire Fairfax’s accomplishments in creating an extremely successful insurance and reinsurance business and are delighted to become part of the Fairfax family.” Thom Senzee