EXOR Launches $6.4 Bln All-cash Takeover Offer For PartnerRe

(RTTNews) - Italian investment firm EXOR S.p.A said Tuesday that it has offered to buy PartnerRe Ltd. (PRE) in an all-cash deal that values the Bermuda-based reinsurer at $6.4 billion.

EXOR, which is controlled by the Agnelli family, is offering $130 cash for each share of PartnerRe, which represents 16% premium to the implied value per share of $112.53 for PartnerRe under the amalgamation agreement between PartnerRe and AXIS Capital Holdings Ltd. (AXS).

In January, Axis Capital and PartnerRe agreed to a near $11 billion merger to create one of the world's largest reinsurers. The two have received early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 with respect to the deal, which is expected to close in the second half of 2015.

"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," EXOR said in a statement.

EXOR, which is the controlling shareholder of Fiat Chrysler Automobiles N.V., said it expects to close the deal in 2015 if it gets the full cooperation of the PartnerRe Board.

PartnerRe shares are currently trading at $129.92, up $10.78 or 9.05%. The shares trade in a 52-week range of $100.81 to $132.58.