Bid compelling, says AMP

AMP, Australia's second-biggest asset manager, called on Axa AsiaPacific Holdings to reassess its rejection of an A$11 billion ($13.8 billion) takeover bid after gains in AMP shares increased the value of the stock and cash offer.

Shares of Sydney-based AMP, which made the bid with France's Axa SA, have jumped 9.5 per cent since the rejection on Monday. Axa Asia Pacific, the Australian unit of the Paris-based insurer, spurned the unsolicited offer, which was 24 per cent higher than its previous closing share price.

"That premium has gone higher as the AMP stock price has gone higher over the last couple of days; in our view that warrants serious consideration by the independent directors," AMP chief executive Craig Dunn said in an interview on ABC Radio yesterday. "We've put on the table a very fair and compelling offer."

Axa Asia Pacific surged on the day the bid was announced, and analysts have said they expect the suitors to make a higher proposal.

AMP said the transaction would double its financial advisers in Australia and New Zealand and swell assets under management 37 per cent to A$142 billion.

- BLOOMBERG