Breaking:EXOR in talks sell PartnerRe for $9 billion...to increase stake in FCA?

[AlexB]

$9 billion influx into EXOR's accounts.
Keep in PartnerRe was EXOR's biggest non-FCA investment.
Many of the "FCA Has A For SALE BY OWNER Sign" crowd have used the PartnerRe purchase as the biggest sign of a desire to exit the Automotive business. I point out on "other websites" the flaw in such thinking, and how a sale would have happen at way earlier stages vs the path taken by John.

Now a deal that would leave EXOR more tied to Automtive business, and reduce EXOR's income:

French insurer Covea is in advanced talks with the Agnelli family’s Exor NV to buy the Italian company’s reinsurance business PartnerRe for about $9 billion in cash, according to people familiar with the discussions.


Covea approached Exor with an offer for the Bermuda-based reinsurer and is in exclusive talks with the holding company that also controls Fiat Chrysler NV and Ferrari NV, said the people, who asked not to be identified as the discussions are private. Talks are advanced but may still not produce a deal, they added.


A spokesman for Exor declined to comment. A representative for Covea didn’t immediately respond to request for comment outside business working hours.


Exor, led by the Agnelli scion John Elkann -- who is also chairman of Fiat and Ferrari -- bought PartnerRe for $6.9 billion in 2015 to diversify its assets outside the capital-intensive automotive industry. A sale for $9 billion in cash would mark a significant gain for the Italian billionaire clan.

Bloomberg - Are you a robot?

Given a 2009 piece,EXOR wanting to increae its stake in FIAT/FIAT Chrysler is not a shock:

MILAN (Reuters) - Fiat SpA's founding family is weighing a capital increase of about 2 billion euros ($2.58 billion) with an eye to a possible merger with France's PSA Peugeot Citroen, an Italian daily reported.

The capital increase by the Agnelli family's Exor holding company would aim at keeping a significant stake in a merged company, La Repubblica said on Thursday without citing sources.

The Agnellis have about 30 percent of Fiat through Exor.

Fiat mulls cap hike for Peugeot tie-up: report

Fiat SpA's founding family is weighing a capital increase of about 2 billion euros ($2.58 billion) with an eye to a possible merger with France's PSA Peugeot Citroen, an Italian daily reported.

in.mobile.reuters.com

 

[Bili]

@AlexB

Exor will not be able to rise a stake in a new company for quite some time. I can't remember if it's a 3, 5 or even 7 years.

But maybe they are seeking some other car company which then they can join NewCo in the foreseeable future.

 

[AlexB]

@AlexB

Exor will not be able to rise a stake in a new company for quite some time. I can't remember if it's a 3, 5 or even 7 years.

But maybe they are seeking some other car company which then they can join NewCo in the foreseeable future.

I think there always room for amend (there's no breakup fee),or do an increase before New Company occurs.

 

[AlexB]

@Bili
GM is more vulnerable with stock price at IPO range+FCA-PSA Balance Sheet+EXOR's actions in the upcoming week ($9 billion)+no state/Nation ownership.

 

[KrisW]

There was talk of PSA selling Faurecia as part of the merger with FCA- could Exor buy that share, and eventually merge it back in to the whole company? I know that's basically Exor giving money to PSA, but Faurecia is a pretty big player in the automotive business in its own right, and the investment would pay its way.