Exor looks to foil Axis plans with $6.4bn PartnerRe bid

Axis Capital’s plans to acquire PartnerRe may have been foiled, following a $6.4 billion bid from investment company Exor.

Exor, which is controlled by the Agnelli family, submitted the proposal which will see the company pay $130 per PartnerRe share. This represents a 16 percent premium to the value offered by Axis, according to the investment company.

“The proposed Exor transaction, which is envisaged to be friendly, can be completed expeditiously. Compared to the all-share combination with Axis, it provides PartnerRe shareholders with superior value and greater certainty since it is all cash, fully financed, and does not require a capital increase by Exor nor a vote by its shareholders,” said the statement.

Exor has invested in the re/insurance for two decades, including as a minority investor in PartnerRe when it was formed in 1993. It said that there is significant long-term potential for a global reinsurer such as PartnerRe.

“Its deep underwriting expertise, significant financial strength, scale and diversification would be enhanced by Exor’s permanent capital base and ability to deploy additional resources to accelerate growth under the right conditions, further strengthening its position as a world leading reinsurer,” said the investment company.

PartnerRe confirmed it had received the offer and that it will review the proposal to determine the course of action that it believes is in the best interests of PartnerRe and its shareholders.