December 14, 2009
SYDNEY (AFP) - Financial services group AXA Asia Pacific said Monday it was considering a sweetened takeover offer worth 11.68 billion US dollars from French parent company AXA SA and Australian rival AMP.
The improved bid of 12.85 billion Australian dollars, one of the biggest worldwide this year, increases the cash component of the offer but will lapse unless accepted by December 21.
Melbourne-based AXA Asia Pacific said it "intends to take the appropriate time to carefully consider this revised proposal and will provide an update to the market when this assessment is completed".
If it goes ahead, AMP believes the deal would result in a "fifth pillar" in the Australian financial sector alongside the big four banks.
The latest offer comes after AXA Asia Pacific Holdings (AXA APH) rejected an initial proposal of 11.04 billion Australian dollars last month, saying it significantly undervalued the company.
"AXA APH has an enviable position in Asia delivering strong growth and an Australian and New Zealand business that is well positioned to take advantage of the recovery in markets and to respond to the anticipated future regulatory changes," its chairman Rick Allert said.
Under the new proposal, AMP and AXA SA continue to offer 0.6896 AMP shares for each AXA APH share.
But the cash amount has been increased from a variable payment of 1.38 Australian dollars linked to the exchange rate, to a fixed 1.92 dollars.
The proposal, which AMP and AXA SA said was their final offer, must receive the unanimous support of AXA APH's independent board committee and meet a range of other conditions.
If approved, the French company would acquire AXA Asia Pacific's Asian operations while AMP would get its Australian and New Zealand businesses.
-- Dow Jones Newswires contributed to this story --
