American Safety Insurance Holdings, Ltd. announced Wednesday that Fairfax Financial Holdings Limited has provided American Safety with a waiver of certain provisions under the merger agreement between the companies.

The waiver will enable American Safety’s board of directors—consistent with its fiduciary duty—to provide Catalina Holdings (Bermuda) Ltd. with access to certain non-public information relating to American Safety, and to engage in discussions and negotiations with Catalina regarding its proposal to acquire American Safety.

In early June, Fairfax and American Safety announced that they had entered into a $306 million merger deal, which also called for Fairfax to sell American Safety Reinsurance, Ltd., the Bermuda-based reinsurance subsidiary of American Safety, to Tower Group International Ltd. for roughly $59 million.

Source: American Safety Insurance Holdings, Ltd.