Deal expected to close in February
First Mercury takeover will add a solid specialty insurer
Gross proceeds will now be $250 million
Bid would cost Fairfax nearly $600 million
Gulf Insurance deal reflects Fairfax’s confidence in Middle East and North Africa
Proceeds to be used to augment firm’s cash position, retire outstanding debt
Firm set to benefit from increased upstream dividend capacity
Watsa expects earnings boost from high quality stocks
Firm hasn’t ruled out Canwest newspaper assets
Shares and warrants purchased for investment purposes