Allied deal multiple represents valuation ceiling: KBW

Fairfax Financial's offer to acquire Allied World for
$4.9bn, or 1.34x book value, represents a likely valuation ceiling
for most near-term deals, according to analysts at Keefe, Bruyette
and Woods (KBW).
Last night, Fairfax announced it had agreed to buy the
Switzerland-based carrier for $54 dollars a share, comprising $10
in cash and $44 in Fairfax stock, translating to a 1.34x
price-to-book multiple.
Fairfax said that $5 of the consideration would come in the form
of a pre-closing cash divide