(Bloomberg) — PartnerRe Ltd., the reinsurer that agreed to merge with Axis Capital Holdings Ltd., said it will enter negotiations with hostile bidder Exor SpA after the Italian company's latest cash offer for more than $6.7 billion.

"The PartnerRe board has determined that the latest Exor proposal would reasonably be likely to result in a 'superior proposal,'" the Bermuda-based reinsurer said in a statement Tuesday.

PartnerRe's announcement marks a shift from refusing to negotiate since May and repeatedly calling Exor's previous offers inadequate. The reinsurer's board said Tuesday it still believes the merger with Axis would add more value, after Exor lifted its $137.50-a-share offer Monday by adding a $3 dividend payable to shareholders before a takeover is completed.

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