Exor is in its second week of meetings with PartnerRe shareholders, the investment firm has announced.
The Turin-based investment firm claimed it had “received a positive response at recent meetings with analysts and shareholders where Exor is highlighting the merits, certainty and superiority of its $137.50 per share, all-cash binding offer”.
The investment vehicle, which runs the assets of Italy’s mega-rich Agnelli family, said it was offering a clarification, before launching another salvo of its increasing spat with PartnerRe’s board.
“In the face of the compelling facts presented by Exor, PartnerRe has disseminated false statements, misrepresented the impact of Exor’s transaction and continues its irresponsible campaign of intentionally and inappropriately misleading its shareholders. This release makes clear the superiority of the Exor offer,” fumed Exor.
“The more the PartnerRe board misleads its shareholders on the merits of the Exor offer the clearer it is that the inferior Axistransaction is short on substance and long on execution and integration risks for its shareholders, employees and clients,” spat the investment firm.
Not only is Exor bidding to take over PartnerRe and derail Axis Capital’s offer, which was approved by the Bermudian reinsurer’s board back in January, but it is also the firm’s biggest single shareholder, giving it a 9.38% voice at the July 24 vote.
“THE FACTS about Exor’s offer speak for themselves,” said the firm, explaining that its bid would give “a better price” for PartnerRe’s common shareholders, “a better deal” for the reinsurer’s preferred shareholders, as well as lacking execution risk or regulatory risk – contradicting statements made by PartnerRe’s board.
Exor said it also offered a “clear commitment to path and closing”, having “backed its offer by investing more than $600m in PartnerRe – the maximum allowable under PartnerRe’s corporate charter. As PartnerRe’s largest shareholder, Exor is therefore more incentivized than any other stakeholder to complete the transaction with PartnerRe this year”.
In a swipe at the merger proposal from Axis, Exor also touted “no integration risk” for its bid.
“With Exor, PartnerRe won’t suffer the disruption of a complex integration, on a scale neither PartnerRe nor Axis has attempted before. In addition to widespread job losses, the merger with AXIS would have a significant impact on the combined company’s employees and culture and pose a very real risk for clients who may choose to take their business elsewhere,” said Exor.
The firm said it could offer “a better, stronger future” for the reinsurer: “with the Exor offer, PartnerRe will remain a standalone reinsurer while also being part of a larger, stronger group with a confirmed investment grade rating, substantial cash resources, and a net asset value of $15 billion. In addition, Exor’s conservative financial management will create the conditions for a better capitalized PartnerRe and an improved rating for the Preferred Shares.”