PartnerRe board accused of ‘engineering’ Axis deal

Italian investment company Exor has accused certain PartnerRe board members of ‘engineering’ an inferior transaction with Axis.

In a letter to PartnerRe’s preferred shareholders, issued yesterday, June 8, Exor accused the transaction committee of engineering an inferior transaction because they stand to benefit “personally and financially”.

The investment company sent the letter as part of its “ongoing process to ensure all PartnerRe shareholders have the information needed in order to make an informed decision with regard to the future of PartnerRe”.

Exor, which was given the green light to communicate directly with PartnerRe’s shareholders recently, reaffirmed its belief that the Axis transaction is inferior to its own.

“In the Exor transaction, PartnerRe preferred shares will remain outstanding in exactly the same way as under the Axis transaction, but in a stronger and safer company that better protects the preferred shareholders’ investment,” said Exor.

“With no change to PartnerRe’s debt level, and a more conservative capital distribution policy than recent practice, PartnerRe is expected to maintain (and potentially enhance over time) the current BBB rating of its preferred securities.”