15 May 2015News

PartnerRe’s shareholders await outcome of deal bid review

PartnerRe’s shareholders will await with interest the outcome of a review being conducted by the company’s board of a new offer for the company made by Exor.

The Italian investment firm has clearly stated that it believes its offer is superior to the deal proposed by Axis Capital and accused PartnerRe of not acting in the best interests of the company.

The Bermuda reinsurer’s board has said it will review the revised bid and make a recommendation that is in the best interests of the company and its shareholders.

Exor’s new bid comes after PartnerRe’s board rejected Exor’s first offer and reaffirmed its intention to complete a deal with Axis Capital, the terms of which were enhanced following the Exor bid to include a one-time special dividend to PartnerRe shareholders.

Exor has now raised its all-cash offer for PartnerRe to $137.5 per share, which Exor said values PartnerRe at $6.8 billion and represents a 10 percent premium to the implied value under the Axis agreement. It had previously offered $130 per PartnerRe share. Exor is also now PartnerRe's largest shareholder with a 9.32 percent stake.

Exor was also highly critical of the PartnerRe board in the way it has handled the rival bids so far. Specifically, it has claimed that the board has ignored the superior value of the Exor bid and is not acting in the best interests of the company.

PartnerRe’s board said in a statement that it would carry out this role consistent with its fiduciary duties and subject to its existing merger agreement with AXIS Capital. It declined to comment further until it has completed a review.