Proxy Mosaic joins ISS and Glass Lewis 


Proxy Mosaic has become the third advisory firm to suggest that PartnerRe shareholders do not merge with Axis.

The other two proxy firms are Institutional Shareholder Services and Glass Lewis & Co.

Proxy Mosaic criticised the planned PartnerRe/Axis merger, saying that “the upside to the merger has been exaggerated, with multiple expansion proving optimistic and the synergy realisation timeline too aggressive.”

Proxy Mosaic said in a statement yesterday that it thought the rival bid by Exor was “superior.”

The advisory firm said: “Ultimately, preferred shareholders should ask themselves the following question: Would you rather hold a security within the capital structure of a disciplined holding company, or a security within an amalgamated reinsurance company that 1) has committed itself to extensive capital distribution plans for common shareholders that could put your dividend at-risk, and 2) is still captive to the kind of earnings volatility that is inherent in the insurance industry, even with the benefit of ‘scale’ and in a benign catastrophe environment?”

Exor recently upped its PartnerRe offer to $140.50 per share.