PartnerRe says it will proceed with Axis Capital deal, rejecting $6.16B offer from Exor

PartnerRe is rejecting an offer from Italian investment company Exor, saying it will go ahead with its combination with competitor Axis Capital.

PartnerRe Ltd. and Axis Capital Holdings Ltd. had agreed to a all-stock deal that valued the combined company at $11 billion. PartnerRe's shareholders will get a little more than half that total.

Exor offered to buy PartnerRe in April for $6.16 billion in cash, or $130 per share. It said that was a better deal for PartnerRe's shareholders.

PartnerRe and Axis Capital say they will also pay a special dividend of $11.50 per share to Partner Re shareholders when their tie-up closes. They expect that will happen in the third quarter. The Bermuda-based companies say they expect around $200 million in annual savings.

Exor says it remains committed to its offer.