AMP Unlikely To Trump NAB’s AXA Bid

Post by Sharat on February 4, 2010 · Under Business News, Company News, International Business News, Mergers & Acquistions, Wealth Management · Comment 

Craig Dunn, chief executive of Australian wealth manager AMP, has cooled on the prospects of acquiring AXA Asia Pacific holdings (APH), and according to The Australian  reportedly told managers at the company that the acquisition is not a “strategic must do”.

AMP’s initial bid for APH was trumped by a rival $13.3 billion bid by NAB.

According to the report the AMP chief briefed 1500 employees nationwide, and whilst maintaining that the wealth manager was still keen to acquire APH, NAB’s all cash bid meant that it was not a “level playing field”

On Wednesday it emerged that AMP would not seek an extension to its exclusivity arrangement with joint bidder and APH parent, French insurer AXA SA.

The exclusivity agreement is set to expire on Saturday, after which AXA SA would then be free to negotiate with other bidders, namely NAB for a takeover attempt.

Both bids are contingent on AXA SA acquiring the Asian businesses of APH.

APH’s Independent directors have already endorsed the NAB bid, which AMP believes would make it difficult for them to retaliate.

It is widely expected next week that the competition regulator the Australian Competition and Consumer Commission (ACCC), will give clearance for AMP’s proposed acquisition of APH.

The ACCC has sought feedback on whether competition in the retail wealth management and funds market would be reduced by NAB buying APH.

APH yesterday revealed that the company had experienced a difficult 2009 despite a 7 per cent improvement during the second half of the year.

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