AXA Asia Pacific Holdings Shareholders Pressure Board To Accept Takeover Bid

Post by Sharat on December 16, 2009 · Under Business News, Company News, Mergers & Acquistions, Wealth Management, banking · Comment

Major institutional shareholders of Asia Pacific insurer AXA Asia Pacific Holdings (APH) are intensifying pressure on the company’s board to approve the $12.8 billion joint takeover bid from French insurance giant AXA SA, and Australian wealth manager AMP as APH board members meet Wednesday to consider a revised deal.

Shareholders are said to have pressured APH chairman Rick Allert to table the bid for a vote during a serious of private briefings Mr. Allert had with institutional investors of the company.

Earlier in the week, the terms of the proposed acquisition were sweetened, when the bidders raised the cash component of the transaction to $1.92 a share up from $1.32, increasing the value of the bid to $6.22 a share or a 53 per cent premium to the targets stock price before the initial bid was made last month.

Mr. Allert is understood to be meeting with six independent directors later on Wednesday, after holding late night discussions just after the revised bid was announced.

A deadline for APH has been set for next Monday, and directors have advised both the target and the bidders that a decision will be taken before the deadline expires.

AMP is thought to be pushing for an answer even earlier than the official deadline, and in a statement said it wanted “executed legal documents” by Monday. The wealth management firm would like the legal process to begin by Thursday.

AMP is probably keen for a confirmation sooner rather than later, after market speculation of itself becoming a possible target in an acquisition attempt by Australian banking major ANZ, started doing the rounds immediately after the APH bid was launched.

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