PartnerRe Ltd and Axis Capital Holdings Ltd would restructure the merger deal between them. A $6.2 billion deal faces challenge as Exor SpA has offered $6.8 billion for the acquisition of PartnerRe. The decision comes after Exor went public about making the offer more attractive. Additional percentage point in the dividend rated would be given by buyer to PartnerRe shareholders. The Axis management has reacted with willingness to offer similar plans. More than $800 million shares are expected from the PartnerRe’s side, which means increase of 1 percent per year. By that calculation, company will only receive $8 million per year.
The small amount of money can totally change the winner in such highly competitive merger deal. The shareholders have control of about 40 percent of PartnerRe vote share. Therefore the prefer shareholders are important part of the decision-making. The deal-makers at PartnerRe are worried about $315 million contract termination fees they may have to pay to Axis if it doesn’t work out. The Exor leadership assured that the corporation would pay all concerned shareholders and the share value would be increased from $137.50 to $143.89.
The ball is in the court of Axis and PartnerRe shareholders now as the termination fee won’t be applicable if they vote against the agreement. The management from both companies told press that this is very less likely to happen and they are confident about the finalization of the deal. Leaders said that they don’t need to reply to offer given by Exor.