Insurer takeover effort founders
Source: Agencies |
November 10, 2009, Tuesday
|
Print Edition
Print Edition
AUSTRALIAN insurer AXA Asia Pacific Holdings Ltd said yesterday it had rejected a US$10 billion takeover bid from AMP Ltd and its French parent, AXA SA.
The cash and share offer would have been among Asia's biggest takeovers this year and resulted in the breakup of AXA Asia Pacific, the Australian unit of giant French insurance company AXA SA. AXA Asia Pacific Chairman Rick Allert said the company's independent board committee agreed unanimously that the proposal, amounting to A$11 billion (US$10.13 billion), significantly undervalued the company.
"The proposal has been received against the backdrop of recent weakness in global financial markets and before the growth of our Asian operations is fully reflected in our profitability," Allert said in a statement.
The proposal valued AXA APH shares at AU$5.34 each, more than 20 percent above last Friday's closing price of AU$4.30.
Allert said his company would consider a better offer.
"If they come back we'll look at whatever they come back with," Allert said.
Under the bid made last Saturday, AMP, an Australian fund manager and insurer, would buy all the shares in AXA APH, including AXA SA's controlling stake. It would then sell back AXA APH's Asian assets to AXA SA, but keep the Australian and New Zealand businesses.
The cash and share offer would have been among Asia's biggest takeovers this year and resulted in the breakup of AXA Asia Pacific, the Australian unit of giant French insurance company AXA SA. AXA Asia Pacific Chairman Rick Allert said the company's independent board committee agreed unanimously that the proposal, amounting to A$11 billion (US$10.13 billion), significantly undervalued the company.
"The proposal has been received against the backdrop of recent weakness in global financial markets and before the growth of our Asian operations is fully reflected in our profitability," Allert said in a statement.
The proposal valued AXA APH shares at AU$5.34 each, more than 20 percent above last Friday's closing price of AU$4.30.
Allert said his company would consider a better offer.
"If they come back we'll look at whatever they come back with," Allert said.
Under the bid made last Saturday, AMP, an Australian fund manager and insurer, would buy all the shares in AXA APH, including AXA SA's controlling stake. It would then sell back AXA APH's Asian assets to AXA SA, but keep the Australian and New Zealand businesses.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
