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Exor sweetens bid for PartnerRe

Italian investment group Exor has upped the ante in its hostile takeover bid for PartnerRe, raising its offer from $US6.4 billion ($7.87 billion) to $US6.8 billion ($8.36 billion) in cash.

Exor says its bid is superior to a share offer from rival Axis Capital and offers a premium on the share price.

Earlier this month PartnerRe’s board rejected Exor’s previous offer and committed to a merger with Axis.

Last week Exor, which is controlled by the Agnelli family of Italy, made a new “irrevocable and binding offer” of $US137.50 ($169.23) per share in cash.

Exor Chairman and CEO John Elkann says the offer “clearly delivers superior and certain value for PartnerRe shareholders, and provides a more attractive outcome for the company’s employees and clients. We hope the PartnerRe Board agrees and does the right thing.

“In any event, we believe PartnerRe shareholders deserve the opportunity to choose our offer and, in order to do so, we urge them to vote against the inferior Axis transaction.”

Exor wants PartnerRe directors to recommend shareholders accept the deal.

PartnerRe says it will review the revised Exor offer, and “will have no further comment” until this is done.

Exor is now PartnerRe’s largest shareholder with a 9.32% stake in the reinsurer.

In January Axis and PartnerRe agreed a merger to create a new reinsurance player capitalised at more than $US11 billion ($13.58 billion).