Exor tempts PartnerRe shareholders with preclose dividend
Reprints
Italian investment firm Exor S.p.A. on Tuesday tweaked its bid for PartnerRe Ltd. in the latest chapter of the acquisition battle for the reinsurer.
Exor has offered to pay PartnerRe shareholders a $6.39-per-share preclosing dividend to reflect and essentially reimburse the $315 million breakup fee Pembroke, Bermuda-based PartnerRe would have to pay if it does not proceed with plans to merge with Axis Capital Holdings Ltd., also of Pembroke, which in January proposed the combination to create the world's fifth-largest reinsurer.
Exor also offered PartnerRe a “go shop” provision to go along with the payout.
Since Exor entered the fray in April, the two potential buyers have exchanged barbs, with Exor raising its bid from an initial $130 per share to $137.50 per share. Tuesday's move would essentially increase the total of Exor's offer to $143.89 per share.
The Italian investment firm also said it would allow PartnerRe to shop itself openly for 30 days after agreeing to the Exor offer.
Exor Chairman and CEO John Elkann stipulated, however, that Exor would not raise its bid in response to any additional bids which might emerge during the “go shop” period, declaring Exor's $137.50 per share bid its “last and final” during a media briefing in New York Tuesday.
He took the opportunity to reiterate his company's intentions should it win the battle for PartnerRe and alluded to further acquisitions.
“We think PartnerRe is of a size and scale which make it a very interesting platform, and we've been very clear that we want to be focused on reinsurance,” Mr. Elkann said.
“We are business builders,” he continued. “Partner Re is an important step for us in the industry, and we would be looking at growing that business, building that business both organically and, if the right acquisitions were to come, we'd look at those.”
Read Next
-
Axis Capital not engaged in buyout talks with Arch, sources say
(Reuters) — Axis Capital Holdings Ltd. has not communicated with any potential acquirer, including Arch Capital Ltd., since it engaged in merger talks with competitor PartnerRe Ltd. last fall, people familiar with the matter said Thursday.
Related Stories
-
Axis Capital not engaged in buyout talks with Arch, sources say
-
Shareholders approve United Insurance move to increase capital by 50%
-
