5 May 2015 Insurance

PartnerRe rejects Exor bid; Axis enhances offer

PartnerRe’s board of directors has reaffirmed its commitment to the planned merger with Axis Capital, following the approval of enhanced merger terms.

The board also rejected the bid by investment company Exor, which valued PartnerRe shares at $130 each. It said that the proposal was Exor’s “best and only offer” and didn’t adequately value PartnerRe.

“The PartnerRe board concluded from these negotiations and analysis that the Exor proposal does not properly or adequately value PartnerRe, as it does not fully recognise the strength of its balance sheet and the value of its franchise,” said the board.

“Further, the PartnerRe board determined that superior value is created through the enhanced merger terms with Axis Capital, and the substantial long-term value potential of the combination with Axis Capital.”

Axis enhanced its offer with the proposal of a one-time special dividend to PartnerRe shareholders of $11.50 per common share prior to the closing of the amalgamation agreement.

Jean-Paul Montupet, PartnerRe chairman, said: “On behalf of the entire PartnerRe board, I am very pleased with the new terms agreed with Axis Capital as they appropriately recognise for our shareholders the significant value of our company.

“We continue to be very excited by the prospects of our amalgamation with Axis Capital, which we firmly believe will create value well in excess of the proposal made by Exor, and will give shareholders the opportunity to be a part of a world-class specialty insurance and reinsurance franchise and to share in the value such a combination will generate well into the future.”

Albert Benchimol, president and chief executive officer of Axis, said: “Axis Capital and PartnerRe have already made significant progress toward realising our shared vision of a broadly diversified global specialty insurance and reinsurance company with the scale, capital and market presence to compete at the highest levels of our industry.

“Throughout this process, we have only grown more confident about the transformational opportunity provided by this merger of equals, and we believe the combination of Axis Capital and PartnerRe will provide our respective shareholders, clients and brokers with compelling value both now and in the years ahead.”

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