Late last Friday, Fairfax Financial Holdings (FFH) announced it had raised its offer to buy the remaining shares of Odyssey Re Holdings (ORH) it did not already own. The new $65 per share offer — a roughly $1 billion deal — marks the exact target price from the recent Zacks Consensus Estimate, wherein Odyssey Re was recommended with an Outperform rating.

Fairfax, for its part, also holds an Outperform ranking from the Zacks Consensus Estimate, though the shares have recently pulled back a bit from their 52-week high set last Tuesday at $374.44, which followed a credit rating upgrade from S&P to BBB+ from BBB. The new offer for Odyssey Re ensures Fairfax is serious about restoring capacity and financial flexibility to its businesses.

The surge in ORH stock began after Friday’s market close and has plateaud to between $64.50 and $65 per share. The big jump in share price happened back on September 8th when the buyout was first announced; ORH shares shot up from around the $50 mark to roughly $62. The stock is up an additional 3-and-a-quarter percent as of mid-day today.

Zacks Investment Research
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