(Bloomberg) -- Exor SpA, the Agnelli family’s investmentcompany, agreed to buy PartnerRe Ltd. for about $6.9billion in its biggest single acquisition in more than a centuryafter the reinsurer scrapped a deal with rival Axis CapitalHoldings Ltd.

Exor, which controls Fiat Chrysler Automobiles NV, will pay$140.50 a share, including a special pre-closing dividend of $3 ashare, according to a statement Monday from PartnerRe andExor. The Bermuda-based reinsurer suffered setbacks in its plan tomerge with Axis when proxy advisory firms recommended last monththat PartnerRe shareholders reject that combination andfavor Exor. A shareholder vote had been scheduled for Aug. 7.

Holding out for a better deal “was critical to delivering atransaction that represents a significant improvement in the priceand terms of Exor’s originalproposal,” PartnerRe Chairman Jean-Paul Montupet said inthe statement.

The deal puts an end to months of hostile bidding. Exor made itsfirst unsolicited offer in April after PartnerRe agreedto combine with Axis in January. Analysts including BMO CapitalMarkets’ Charles Sebaski have said a failed merger agreement couldleave Axis open to a takeover.

Exor made an $6.4 billion offer on April 14, then announced ahigher bid on May 12, saying that day that it had accumulated astake of more than 9 percent stake in PartnerRe. The Turin-based investment company, which is seeking to diversify beyondindustrial holdings, highlighted that its offer was all-cash andfiled proxy material to allow PartnerRe shareholders tovote against the Axis agreement.

‘Strengthened Resolve’

Exor reversed earlier gains and was down 0.4 percent to 45.69euros at 1:33 p.m. in Milan. PartnerRejumped 2.2 percent to$139 in early trading in New York.

The agreement requires the approvalof PartnerRe shareholders at a special general meeting tobe called “as soon as reasonably practicable,” Exor said. Itexpects to complete the acquisition no later than the first quarterof next year. The agreement includes a “go-shop” period in whichthe PartnerReboard can solicit competing offers until Sept.14.

Axis said in a separate statement that it will get a $315million termination fee.

“Prior to PartnerRe reaching out to us last Decemberto discuss a combination of our companies, we were confident incontinuing with our strategy as a stand-alone company,” AxisChairman Michael Butt said in a separate statement. “We will nowproceed with that strategy, with strengthened resolve.”

--With assistance from Doni Bloomfield, Selina Wang and SteveDickson in New York.

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