15 Dec 2009

One week deadline on new offer for AXA

6:04 am on 15 December 2009

Australasian insurer and fund manager AMP is giving AXA Asia Pacific one week to accept a revised takeover bid.

Investors are now being offered $A6.22 per share, which AMP says is 16% higher than its original bid.

AXA Asia Pacific says it will take the time it needs to carefully consider the revised bid and it's advising shareholders to do nothing in the mean time.

However, AMP chief executive Craig Dunn says a week is a reasonable length of time for the company's independent directors to review the bid, and he expects a positive outcome.

Under the proposed deal, Axa Asia Pacific would be broken up, with AMP taking the Australasian assets, and Axa SA buying the Asian assets.

The new offer increases the cash component by 54 cents to $A1.92 per share, while the stock component remains unchanged at 0.7 AMP shares.

To pay for the increased offer, AMP is putting in an extra $A100 million with AXA SA putting in $A415 million.

AMP is keen to expand its wealth management business, and compete with the main banks which themselves have targeted this sector for growth.