Activist Hedge Fund Sandell Notches Win with PartnerRe/Exor Merger

Italian-based investment company Exor, controlled by the Agnelli family, said on Monday it had struck a $6.9 billion (€6.3 billion) deal to buy reinsurer PartnerRe.

In connection with the termination of the amalgamation agreement, AXIS Capital will receive $315 million from PartnerRe.

Exor said in a statement it would pay $137.50 for each PartnerRe share and also offer a $3 special dividend per share, in line with its latest, improved offer.

The agreement marks a U-turn for PartnerRe, which in January had agreed a merger with Axis and repeatedly spurned approaches from Exor, despite sweetened offers.

The surprise move by Exor, which also controls Fiat Chrysler Automobiles, was the biggest acquisition attempt ever by the Agnelli family.

The agreement came after months of acrimony, during which Exor has gone to great lengths to win over PartnerRe shareholders.

Turin, Italy-based investment firm Exor entered the fray in April with a bid of $130 per share, with Axis and Exor subsequently upping their offering price. It improved its bid six times, increasing the pressure, but stopping short of going hostile.

Exor, meanwhile, owns more than 9% of PartnerRe and is the company’s largest shareholder.

Michael Butt, chairman of the Axis board of directors, said: “Prior to PartnerRe reaching out to us last December to discuss a combination of our companies, we were confident in continuing with our strategy as a stand-alone company, building our three strong businesses incrementally”.

The deal is expected to close by the first quarter of 2016.

Monday’s agreement includes a “go-shop” period, during which PartnerRe has the right to seek competing offers until September 15.