Italian suitor prevails in bid for PartnerRe
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A monthslong takeover drama has resulted in Pembroke, Bermuda-based reinsurer PartnerRe Ltd. agreeing to a sweetened $6.9 billion all-cash buyout by Italy's Exor S.p.A.
The deal was announced Monday, in which Exor will pay PartnerRe $140.50 a share.
• PHOTO GALLERY: MERGER MANIA
The deal ends a monthslong takeover effort that began in January, when Axis Capital Holdings Ltd. and PartnerRe agreed to an $11 billion cash-and-stock merger.
Turin, Italy-based investment firm Exor entered the fray in April with a bid of $130 per share, with Axis and Exor subsequently upping their offering price.
Last week, two major proxy advisory firms recommended that PartnerRe shareholders accept Exor's bid and vote against the amalgamation with Axis.
In the deal that is expected to close in the first quarter of 2016 and is subject to regulatory and shareholder approval, PartnerRe is to remain a stand-alone brand.
“Today's agreement is very positive for PartnerRe and Exor. Under our stable and committed ownership, PartnerRe will continue to develop as a leading independent global reinsurer,” John Elkann, chairman and CEO of Exor, said in a statement.
“We are pleased to reach this agreement with Exor, which we believe is in the best interest of our shareholders,” PartnerRe Chairman Jean-Paul Montupet said in the statement. Thorough evaluation and careful deliberation were “critical to delivering a transaction that represents a significant improvement in the price and terms of Exor's original proposal.”
Also Monday, Axis released a statement terminating its earlier amalgamation agreement, triggering payment of a $315 million breakup fee from PartnerRe to Axis.
“While I am disappointed that the merger will not proceed, I have no doubt that the best days for Axis Capital, our employees, clients, brokers and shareholders lie ahead,” Albert Benchimol, president and CEO of Axis Capital, said in the statement.
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