PartnerRe Prepared to Engage With Exor in Takeover Talks

PartnerRe Ltd. said Wednesday that it is prepared to engage in takeover talks with Exor SpA, after rejecting the Italian holding company's previous offer.

Last week, Exor sweetened its all-cash offer for the reinsurer by 5.8%, in a $6.8 billion bid that would break up PartnerRe's plan to merge with Axis Capital Holding Ltd.

Exor, which owns a controlling stake in Fiat Chrysler Automobiles, is now offering $137.50 a share compared with a previous bid of $130 a share.

PartnerRe said Wednesday that while it still believes it is worth "materially more than Exor has offered," it has requested a waiver from merger partner Axis that will allow Exor to conduct due diligence.

In rejecting Exor's previous bid, PartnerRe's board reiterated its plan to merge with Axis Capital Holding. That tie-up, first announced in January, appeared set to sail to completion without any serious obstacles until Exor made its initial surprise bid in mid-April.

While its initial approach was friendly, Exor has become increasingly hostile and said it has filed documents with the Securities and Exchange Commission that would allow the Italian company to appeal directly to PartnerRe shareholders to reject the board's planned deal with Axis.

Exor has said it has already invested $572 million in PartnerRe and is the Bermuda-based company's largest shareholder with a 9.3% stake.

Write to Chelsey Dulaney at [e-mail]

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