Axis & PartnerRe contemplate enhancing merger terms

PartnerRe and Axis Capital have revealed they are considering amending the terms of their merger agreement to sweeten the deal.

This has prompted the companies to push back the shareholder vote by two weeks to August 7, 2015.

“PartnerRe and Axis Capital are committed to ensuring that common and preferred shareholders benefit materially from the combination of the two companies. The companies will communicate enhancements to their amalgamation agreement in the near-term,” said the companies.

The move follows Exor’s announcement to sweeten its own offer for the Bermuda-based reinsurer. Exor has offered a “go shop” provision which would allow PartnerRe to solicit bids from third parties after signing with the Italian investment company and offered a 100 basis points (bps) increase in the dividend rate for preferred shareholders.