PartnerRe lobbies shareholders to vote for Axis merger
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Reinsurer PartnerRe Ltd. urged shareholders Tuesday to support its planned merger with Axis Capital Holdings Ltd. and reject an all-cash offer from Italy's Exor S.p.A.
“The PartnerRe board of directors continues to urge its shareholders of both common and preferred shares to promptly … vote for the amalgamation agreement with Axis Capital,” PartnerRe said in its statement Tuesday.
Pembroke, Bermuda-based Partner had agreed in January to an $11 billion merger with Axis, also based in Pembroke, in a stock-swap deal to form the world's purportedly fifth-largest reinsurer.
In April, Exor stepped in with a $130 per share, $6.4 billion all-cash offer which has since been raised to $137.50 per share, or $6.8 billion, and became hostile after Axis countered the initial Exor offer with a special dividend.
In a statement Monday, the Bermuda reinsurer touted Standard & Poor's Corp.'s view of the Axis merger while warning of the potential downside of an Exor sale.
“S&P has affirmed PartnerRe's ratings with a stable outlook in the context of the Axis Merger,” Partner said in its Monday statement.
It added, “PartnerRe continues to believe that there is considerable downside risk involved in a sale to EXOR, on its current price and terms, especially for preferred shareholders.”
Meanwhile, in an Exor statement issued Monday, the Turin-Italy based investment company said it was continuing to meet with stock analyst pressing its case for a PartnerRe takeoker.
“With the Exor offer, PartnerRe will remain a standalone reinsurer while also being part of a larger, stronger group,” the Exor statement said.
