Fairfax bids $300 million for Toys R Us's Canada business

Canada's Fairfax Financial Holding has placed a bid of $300 million to buy Toys R Us's Canadian operations in bankruptcy.

According to court papers filed late Thursday, the bidder is taking on a role of a "stalking horse" in a court-approved auction set for Monday in New York. That means it could be outbid in the auction if other buyers come in with a higher offer. The bid from Fairfax surpassed the $215 million offer that Isaac Larian, the CEO of privately held toy company MGA Entertainment, along with several other investors, made last week.

Larian, along with other investors, has also offered $675 million to buy 274 U.S. stores.

In March, Toys R Us said it would be liquidating its U.S. business.

Fairfax is a holding company involved in property and casualty insurance and reinsurance and investment management.