89% of ORH Shares Tendered

[Parsad]

Fairfax should complete the merger in short-order and delist ORH.  Cheers!

 

http://www.sec.gov/Archives/edgar/data/915191/000095012309052126/o57503a6sctovtza.htm

[Guest longinvestor]

<In the merger, all Shares held by the remaining stockholders of Odyssey Re (other than Shares owned by the Fairfax Group) will be cancelled and, subject to appraisal rights, converted into the right to receive $65.00 per Share in cash.>

 

 

Could someone describe in simple terms what happens to shorts who have not covered as yet? They get to cover at $65? But there are no shares available! How does this work? I remember the shorts were very active in ORH through this summer!

[ERICOPOLY]

<In the merger, all Shares held by the remaining stockholders of Odyssey Re (other than Shares owned by the Fairfax Group) will be cancelled and, subject to appraisal rights, converted into the right to receive $65.00 per Share in cash.>

 

 

Could someone describe in simple terms what happens to shorts who have not covered as yet? They get to cover at $65? But there are no shares available! How does this work? I remember the shorts were very active in ORH through this summer!

 

Put it this way, the only way to get the full $65 per share was to wait it out for the actual Fairfax buyout to occur.  The bid/ask was lower than that price all along since the date the buyout was announced. 

 

Anyone truly desperate to cover could have offered anything between the ask and the $65 final figure for over a month now.  People would have been tripping over themselves to sell at $65 to a short several weeks ago versus wait for the Fairfax cash today.  The time value of money dictates this.