Exor Adds Special Dividend To Takeover Bid For PartnerRe

(RTTNews) - Italian holding company Exor S.p.A. (EXOSF.PK) said Monday that it has added a special dividend of $3.00 per share to its takeover bid for Bermuda-based reinsurer PartnerRe Ltd. (PRE), as it seeks to thwart PartnerRe's deal to merge with Axis Capital Holdings Ltd. (AXS).

Exor, controlled by Italy's Agnelli family, noted that the additional $3.00 per share of real incremental value to PartnerRe common shareholders "further widens the gap" in value with the Axis transaction. Exor is also PartnerRe's largest shareholder.

The special dividend will be in addition to Exor's confirmed offer of $137.50 per share in cash, thus bringing its total all-cash consideration to $140.50 per share for PartnerRe's common shareholders.

Exor said it has added the special dividend to compensate PartnerRe shareholders for the expected closing of the Exor transaction in early 2016.

The company noted that when it submitted its binding offer in May, it had assumed the PartnerRe special general meeting would be held in June and the closing of the Exor transaction would occur in the fourth quarter of 2015.

"Through its actions, PartnerRe's Board has effectively acknowledged the superiority of the Exor Binding Offer by seeking enhanced terms with Axis. This is the second time the PartnerRe Board has sought to improve its terms with Axis to respond to the Exor offer, while continuing to claim that the Exor offer is inferior," Exor said in a statement.

However, PartnerRe has continued to recommend its merger with Bermuda-based peer Axis Capital. The two companies agreed to merge in January, creating a company with a combined market capitalization of more than $11 billion.

Last week, PartnerRe and Axis Capital said their merger deal would be sweetened to include a one-time special dividend of $17.50 per share to PartnerRe shareholders before the closing of the deal.

PartnerRe and Axis shareholders are slated to vote on August 7 on the merger of their two companies.

PRE is trading at $135.70, up $0.85 or 0.63 percent on a volume of 144,106 shares. AXS is trading at $54.76, up $0.01 or 0.02 percent on a volume of 50,457 shares.