March 3 (Reuters) - Fairfax Financial Holdings Ltd FFH.TO :
* Fairfax Financial and Allied World provide update on merger transaction
* Fairfax Financial Holdings-Co, Allied World assurance agreed to extend to March 10, 2017 deadline by which co has option to increase cash consideration
* Fairfax Financial-agreed to extend to March 10, 2017 deadline by which co could reduce "fixed value stock consideration" under deal terms Source text for Eikon: ID:nCCNc32J1k Further company coverage: FFH.TO