AXA SA And AMP Sweeten AXA APH Bid

Post by Sharat on December 15, 2009 · Under Business News, Company News, Life Insurance, Mergers & Acquistions, Wealth Management, insurance · Comment

Australian wealth manager, AMP and its partner French insurance giant AXA SA have sweetened their joint acquisition bid for AXA Asia Pacific Holdings to $12.85 billion from an original bid of $11.7 billion.

Analysts expect that the revised bid should be enough to seal a deal, whilst APH’s independent directors who rejected the initial proposal said they would consider the new bid.

The joint bidders increased the cash component of their bid by 54 cents a share, increasing the overall acquisition price by 10 per cent. The bidders also intensified the pressure for the target to make a quick decision by setting a 7 day deadline for a deal and declaring the revised bid as final offer.

“The independent board committee will take the appropriate time to carefully consider the revised proposal and we will update our shareholders and the market when this assessment has been completed,” said AXa APH chairman Rick Allert in a statement.

A successful transaction would transform AMP into Australia’s largest asset manager and allow AXA SA to break free from the bondage of regulation as it seeks to expand its Asian presence.

Under the terms of AXA SA’s acquisition of AXA APH’s previous incarnation National Mutual Life, AXA APH agreed to the Australian government’s demand to use it as the vehicle for all future Asian expansion.

The current bid is the second time the French insurance giant has tried to acquire the Asia assets of its subsidiary. The first unsuccessful attempt was back in 2004, when APH rejected a $6.9 billion buyout.

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