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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13G
UNDER THE SECURITIES EXCHANGE ACT OF 1934
(AMENDMENT NO. 3)*
Russel Metals Inc.
- --------------------------------------------------------------------------------
(Name of Issuer)
Class A Convertible
- --------------------------------------------------------------------------------
(Title of Class of Securities)
781903109
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(CUSIP Number)
*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange
Act of 1934 ("Act") or otherwise subject to the liabilities of that section of
the Act but shall be subject to all other provisions of the Act.
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CUSIP NO. 781903109
----------
- --------------------------------------------------------------------------------
1) Names of Reporting Persons S.S. or I.R.S Identification Nos.
of Above Persons
V. Prem Watsa
-----------------------------------------------------------------------
(No S.S. or I.R.S. Identification Nos.)
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b) X
- --------------------------------------------------------------------------------
3) SEC Use Only
- --------------------------------------------------------------------------------
4) Citizenship or Place of Organization
Canada
- --------------------------------------------------------------------------------
Number of Shares (5) Sole Voting Power -0-
Beneficially Owned ---------------------------------------------------------
by Each Reporting (6) Shared Voting Power 8,857,194
Person With ---------------------------------------------------------
(7) Sole Dispositive Power -0-
---------------------------------------------------------
(8) Shared Dispositive Power 8,857,194
- --------------------------------------------------------------------------------
9) Aggregate Amount Beneficially Owned by Each Reporting Person 8,857,194
- --------------------------------------------------------------------------------
10) Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
Instructions)
- --------------------------------------------------------------------------------
11) Percent of Class Represented by Amount in Row 9 17.3%
- --------------------------------------------------------------------------------
12) Type of Reporting Person (See Instructions) IN (Canadian)
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2(1)
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CUSIP NO. 781903109
----------
- --------------------------------------------------------------------------------
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above
Persons
The Sixty Two Investment Company Limited
----------------------------------------------------------------------
(No S.S. or I.R.S. identification Nos.)
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b) X
- --------------------------------------------------------------------------------
3) SEC Use Only
- --------------------------------------------------------------------------------
4) Citizenship or Place of Organization British Columbia, Canada
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Number of Shares (5) Sole Voting Power -0-
Beneficially Owned ------------------------------------------------------
by Each Reporting (6) Shared Voting Power 8,857,194
Person With ------------------------------------------------------
(7) Sole Dispositive Power -0-
------------------------------------------------------
(8) Shared Dispositive Power 8,857,194
- --------------------------------------------------------------------------------
9) Aggregate Amount Beneficially Owned by Each Reporting Person
8,857,194
- --------------------------------------------------------------------------------
10) Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
Instructions)
- --------------------------------------------------------------------------------
11) Percent of Class Represented by Amount in Row 9 17.3%
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12) Type of Reporting Person (See Instructions) CO (Canadian)
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2(2)
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CUSIP NO. 781903109
----------
- --------------------------------------------------------------------------------
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above
Persons
810679 Ontario Ltd.
----------------------------------------------------------------------
(No S.S. or I.R.S. Identification Nos.)
- --------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b) X
- --------------------------------------------------------------------------------
3) SEC Use Only
- --------------------------------------------------------------------------------
4) Citizenship or Place of Organization Ontario, Canada
- --------------------------------------------------------------------------------
Number of Shares (5) Sole Voting Power -0-
Beneficially Owned -------------------------------------------------------
by Each Reporting (6) Shared Voting Power 8,857,194
Person With -------------------------------------------------------
(7) Sole Dispositive Power -0-
-------------------------------------------------------
(8) Shared Dispositive Power 8,857,194
- --------------------------------------------------------------------------------
9) Aggregate Amount Beneficially Owned by Each Reporting Person
8,857,194
- --------------------------------------------------------------------------------
10) Check if tile Aggregate Amount in Row (9) Excludes Certain Shares (See
Instructions)
- --------------------------------------------------------------------------------
11) Percent of Class Represented by Amount in Row 9 17.3%
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12) Type of Reporting Person (See Instructions) CO (Canadian)
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2(3)
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CUSIP NO. 781903109
---------
- --------------------------------------------------------------------------------
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above
Persons
Fairfax Financial Holdings Limited
--------------------------------------------------------------
(No S.S. or I.R.S. Identification Nos.)
- --------------------------------------------------------------------------------
2) Check tile Appropriate Box if a Member of a Group (See Instructions)
(a)
(b) X
- --------------------------------------------------------------------------------
3) SEC Use Only
- --------------------------------------------------------------------------------
4) Citizenship or Place of Organization Canada
- --------------------------------------------------------------------------------
Number of Shares (5) Sole Voting Power -0-
Beneficially Owned --------------------------------------------------------
by Each Reporting (6) Shared Voting Power 8,857,194
Person With --------------------------------------------------------
(7) Sole Dispositive Power -0-
--------------------------------------------------------
(8) Shared Dispositive Power 8,857,194
- --------------------------------------------------------------------------------
9) Aggregate Amount Beneficially Owned by Each Reporting Person
8,857,194
- --------------------------------------------------------------------------------
10) Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
Instructions)
- --------------------------------------------------------------------------------
11) Percent of Class Represented by Amount in Row 9 17.3%
- --------------------------------------------------------------------------------
12) Type of Reporting Person (See Instructions) HC (Canadian)
- --------------------------------------------------------------------------------
2(4)
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CUSIP NO. 781903109
---------
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above
Persons
Hamblin Watsa Investment Counsel Ltd.
----------------------------------------------------------------------
(No S.S. or I.R.S. identification Nos.)
- --------------------------------------------------------------------------------
2) Check tile Appropriate Box if a Member of a Group (See Instructions)
(a)
(b) X
- --------------------------------------------------------------------------------
3) SEC Use Only
- --------------------------------------------------------------------------------
4) Citizenship or Place of Organization Canada
- --------------------------------------------------------------------------------
Number of Shares (5) Sole Voting Power -0-
Beneficially Owned ----------------------------------------------------
by Each Reporting (6) Shared Voting Power 8,857,194
Person With ----------------------------------------------------
by Each Reporting (7) Sole Dispositive Power -0-
----------------------------------------------------
(8) Shared Dispositive Power 8,857,194
- --------------------------------------------------------------------------------
9) Aggregate Amount Beneficially Owned by Each Reporting Person
8,857,194
- --------------------------------------------------------------------------------
10) Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See
Instructions)
- --------------------------------------------------------------------------------
11) Percent of Class Represented by Amount in Row 9 17.3%
- --------------------------------------------------------------------------------
12) Type of Reporting Person (See Instructions) CO and IA (Canadian)
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2(5)
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ITEM 1(a)
Name of Issuer: Russel Metals Inc.
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ITEM 1(b)
Address of Issuer's Principal Executive Offices: 1900 Minnesota Court,
-------------------------------
Suite 210, Mississauga, Ontario, Canada L5N 3C9
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ITEM 2(a)
Names of Persons Filing: V. Prem Watsa, The Sixty Two Investment Company
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Limited, 810679 Ontario Ltd., Fairfax Financial Holdings Limited and Hamblin
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Watsa Investment Counsel Ltd. (See Note 1 below)
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ITEM 2(b)
Address of Principal Business Office or, if none, Residence:
95 Wellington Street West, Suite 802, Toronto, Ontario, Canada M5J 2N7
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ITEM 2(c)
Citizenship: Canada
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ITEM 2(d)
Title of Class of Securities: Class A Convertible Shares
--------------------------------------------------
ITEM 2(c)
CUSIP Number: 781903109
------------------------------------------------------------------
ITEM 3
If this statement is filed pursuant to Rule 13d-1(b), check whether the person
filing is a:
(a) [ ] Broker or Dealer registered under Section 15 of the Act
(b) [ ] Bank as defined in Section 3(a)(6) of the Act
(c) [ ] Insurance Company as defined in Section 3(a)(19) of the Act
(d) [ ] Investment Company registered under Section 8 of the Investment
Company Act
- ---------------------------
Note 1: Mr. Watsa, The Sixty Two Investment Company Limited, 810679 Ontario
Ltd. and Hamblin Watsa Investment Counsel Ltd. are filing this
Schedule 13G pursuant to a no-action letter dated June 8, 1994 from
the Commission to Fairfax Financial Holdings Limited.
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(e) [ ] Investment Adviser registered under Section 203 of the Investment
Advisers Act of 1940
(f) [ ] Employee Benefit Plan, Pension Fund which is subject to the
provisions of the Employee Retirement Income Security Act of
1974 or Endowment Fund; see Section 240.13d-1(b)(1)(ii)(F)
(g) [X] Parent Holding Company), in accordance with Section
240.13d-1(b)(ii)(G) (See Note 2 below)
(h) [ ] Group, in accordance Section with Section 240.13d-1(b)(1)(ii)(H)
ITEM 4
Ownership
- ----------
If the percent of the class owned, as of December 31 of the year
covered by the statement, or as of the last day of any month described in Rule
13d-1(b)(2), if applicable, exceeds five percent, provide the following
information as of that date and identify those shares which there is a right to
acquire.
(a) Amount Beneficially Owned:
8,857,194
------------------------------------------------------------------------
(b) Percent of Class:
17.3%
------------------------------------------------------------------------
(c) Number of shares as to which such person has:
(i) sole power to vote or to direct the vote -0-
---------------------------
(ii) shared power to vote or to direct the vote 8,857,194
-------------------------
(iii) sole power to dispose or to direct the disposition -0-
-----------------
(iv) shared power to dispose or to direct the disposition of 8,857,194
-----------
ITEM 5
Ownership of Five Percent or Less of a Class.
- ---------------------------------------------
If this statement is being filed to report the fact that as of the date
hereof the reporting person has ceased to be the beneficial owner of more than
five percent of the class of securities, check the following [ ].
- ------------------------------
Note 2: The filing of this Schedule 13G and the statements therein shall
not be construed as an admission that Mr. Watsa, The Sixty Two
Investment Company Limited, 810679 Ontario Ltd. or Fairfax
Financial Holdings Limited are for the purposes of Sections 13(d)
or 13(g) of the Securities Exchange Act of 1934 the beneficial
owners of the Issuer's Class A Convertible Stock or have any
pecuniary interest therein.
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ITEM 6
Ownership of More than Five Percent on Behalf of Another Person.
- ----------------------------------------------------------------
Not applicable.
ITEM 7
Identification Classification of Subsidiary Which Acquired the Security Being
- -------------------------------------------------------------------------------
Reported on By the Parent Holding Company.
- ------------------------------------------
Mr. Watsa, directly, and indirectly through The Sixty Two Investment
Company Limited and 810679 Ontario Ltd., owns the controlling equity voting
interest of Fairfax Financial Holdings Limited ("Fairfax"). Fairfax is filing
this Schedule 13G on behalf of six of Fairfax's subsidiary corporations, (1)
Lombard General Insurance Company of Canada (formerly The Continental Insurance
Company of Canada Inc.) ("Lombard") which owns 2,202,300 Class A Convertible
shares of the Issuer, (2) Ranger Insurance Company ("Ranger") which owns 591,100
Class A Convertible shares of the Issuer, (3) Odyssey America Reinsurance
Corporation (formerly Skandia America Reinsurance Corporation) ("Odyssey") which
owns 1,738,500 Class A Convertible shares of the Issuer, (4) Markel Insurance
Company of Canada ("Markel") which owns 32,432 Class A Convertible shares of the
Issuer indirectly through ownership of the Issuer's convertible debentures, (5)
Commonwealth Insurance Company ("Commonwealth") which owns 62,162 Class A
Convertible shares of the Issuer indirectly through ownership of the Issuer's
convertible debentures and (6) Hamblin Watsa Investment Counsel Ltd., a Canadian
investment adviser ("Hamblin"). Hamblin, through its investment advisory
agreements with clients outside the Fairfax group, as well as with Lombard,
Ranger, Odyssey, Markel and Commonwealth, shares the power to vote, and the
power to dispose of, 8,857,194 Class A Convertible shares of the Issuer. Exhibit
A attached hereto states the identity and Item 3 classification of Lombard,
Ranger, Odyssey, Markel, Commonwealth and Hamblin.
ITEM 8
Identification and Classification of Members of the Group.
- ----------------------------------------------------------
Not applicable.
ITEM 9
Notice of Dissolution of Group.
- -------------------------------
Not applicable.
ITEM 10
Certification.
- --------------
By signing below I certify that, to the best of my knowledge and
belief, the securities referred to above were acquired in the ordinary course of
business and were not acquired for the purpose of and do not have the effect of
changing or influencing the control of the issuer of such securities and
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were not acquired in connection with or as a participant in any transaction
having such purposes or effect.
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Date: February 5, 1998
/s/ V. Prem Watsa
----------------------------------------
Signature
V. Prem Watsa
----------------------------------------
Name
THE SIXTY TWO INVESTMENT COMPANY
LIMITED
By: /s/ V. Prem Watsa
----------------------------------------
Signature
V. Prem Watsa, President
----------------------------------------
Name / Title
810679 ONTARIO LTD.
By: /s/ V. Prem Watsa
----------------------------------------
Signature
V. Prem Watsa, President
----------------------------------------
Name / Title
FAIRFAX FINANCIAL HOLDINGS LIMITED
By: /s/ Eric P. Salsberg
----------------------------------------
Signature
Eric P. Salsberg, V.P. Corporate Affairs
----------------------------------------
Name / Title
HAMBLIN WATSA INVESTMENT COUNSEL LTD.
By: /s/ A.F. Hamblin
----------------------------------------
Signature
A.F. Hamblin, President
----------------------------------------
Name / Title
6
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EXHIBIT A
TO SCHEDULE 13G FILED BY
FAIRFAX FINANCIAL HOLDINGS LIMITED AND OTHERS
Relevant Subsidiary Item 3 Classification
- ------------------- ---------------------
Lombard General Insurance
Company of Canada (c) Insurance Company
Ranger Insurance Company (c) Insurance Company
Odyssey America Reinsurance
Corporation (c) Insurance Company
Markel Insurance Company of
Canada (c) Insurance Company
Commonwealth Insurance Company (c) Insurance Company
Hamblin Watsa Investment
Counsel Ltd. (e) Investment Advisor
7
