Dec 18 (Reuters) - Fairfax Financial Holdings Ltd FFH.TO :
* cash and share offer with dividend for total value of $54.00 per Allied World share - $10.00 in cash and $44.00 in Fairfax shares
* offer price represents a premium of 18% to closing price of $45.77 per Allied World share on December 16, 2016
* Option to increase total cash payable to Allied World shareholders by up to $30/Allied World share, for total of $40 cash/Allied World share
* Fairfax may elect to fund $30.00 in cash by an equity or debt issuance or by bringing in third party partners
* offer unanimously supported by Allied World board
* Fairfax Financial says transaction will be effected by way of an exchange offer, followed by a squeeze-out merger
* Fairfax Financial to acquire Allied World for $4.9 billion in cash and stock Source text for Eikon: Further company coverage: FFH.TO