NEW YORK (AP) -- PartnerRe's biggest shareholder, Italian investment company Exor, is buying the reinsurer in a deal worth about $6.9 billion.
PartnerRe is ending its all-stock agreement with Axis Capital Holdings Ltd., which was made in January, in order to move ahead with a combination with Exor. PartnerRe previously rejected a $6.16 billion bid from Exor.
PartnerRe will pay Axis Capital $315 million for terminating the agreement.
Exor S.p.A. said Monday that it will pay $137.50 for each outstanding share of PartnerRe, as well as a $3-per-share special dividend.
PartnerRe Ltd.'s board will be able to solicit competing offers and enter talks related to proposals received before Sept. 14.
Exor and PartnerRe's boards have unanimously approved the deal.
PartnerRe said that it will continue to be based in Bermuda.
The transaction is targeted to close no later than 2016's first quarter. It still needs approval from PartnerRe shareholders.
Exor is controlled by the Agnelli family, the descendants of the founder of Fiat.