NEW YORK (TheStreet) -- Shares of PartnerRe Ltd. (PRE) are gaining by 2.20% to $136.38 in pre-market trading on Tuesday morning, after the European investment company EXOR increased its takeover bid for the international reinsurance and insurance group ultimate holding company to $137.50 per share in cash, valuing PartnerRe at $6.8 billion.
EXOR's move is an attempt to beat out rival Axis Capital Holding (AXS) for control of PartnerRe, Bloomberg reports.
Exor's binding offer of $137.50 per share represents a 10% to the implied value of the $125.17 per PartnerRe share under the revised Amalgamation Agreement between PartnerRe and Axis, the company said in a statement.
"EXOR's binding 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," John Elkann, EXOR CEO said in a statement.
Separately, TheStreet Ratings team rates PARTNERRE LTD as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate PARTNERRE LTD (PRE) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- PRE's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, PARTNERRE LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 8.9%. Since the same quarter one year prior, revenues slightly dropped by 3.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full analysis from the report here: PRE Ratings Report