Source: The Canadian Press

Fairfax Financial Holdings Ltd. (TSX:FFH) said Friday that shareholders of First Mercury Financial Corp. have voted to approve a US$294-million takeover of the company.

The company said over 99% of the votes cast, representing approximately 85% of the shares of First Mercury, supported the deal.

Under the agreement, Fairfax will pay US$16.50 per First Mercury share.

The takeover still requires approval by regulators in Arkansas, Delaware and Illinois.

The deal is expected to close in February.

First Mercury wrote $344 million in gross premiums in 2009, mainly in specialty lines such as security guards.