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Partnerre Ltd (NYSE:PRE) Rejects A Bid Worth $6.4 Billion From Exor

Partnerre Ltd (NYSE:PRE) has decided to reject an unsolicited bid worth $6.4 billion from Italy’s Exor. As per the reports, Exor had put forward a lucrative takeover proposal in front of Partnerre to ensure that its proposed merger deal with Axis Capital Holdings Ltd. couldn’t be executed. Partnerre has clearly stated that it would like to go with its earlier committed deal with Axis Capital rather than accepting Exor’s offer.

What’s In There For Shareholders:

Partnerre doesn’t want to affect its relations with Axis Capital adversely; hence, the company has decided to pay a special dividend of $11.50 a share to all the shareholders before closing the deal. The company hopes that this announcement will strengthen not only its relations with Axis Capital, but also the trust of shareholders.

Talks Between Partnerre And Exor:

Partnerre mentioned in a statement that it had tried to indulge in extensive talks with Exor concerning taking this transaction forward, but things couldn’t be executed. As per the information made available by the company, Exor was not ready to improve the terms of the deal. Exor is a leading Italy based company that has a major stake in Fiat-Chrysler Automobiles NV. The management teams of Exor and Partnerre had met recently, but the meeting couldn’t bring any fruitful outcome.

As per the reports, Exor has offered $130 per share in cash for Partnerre Ltd (NYSE:PRE). Exor claimed that the price offered by it was 16% premium for all the shareholders of Partnerre before it indulged in talks with Axis Capital and announced a special dividend on Monday.

The senior management of Partnerre hopes that it will be in a better situation to create value for all the shareholders if it goes forward to merge with Axis Capital, which is a prominent insurer in the country. It looks forward to sharing further information about the deal in a few days time.

Published by Chris Brown

About Me: I have a Phd in Economics Gender: Male Interests: Playing games like cricket, volleyball Favorite Music: hip hop, rock, jazz

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