AXA Asia Pacific Holdings and National Australia Bank say talks with AXA's French parent on a $13.2 billion takeover plan are in an advanced stage, but investors say further delays may spur rival bidder AMP to make a comeback.
Fund manager and life insurer AXA Asia Pacific extended its agreement with NAB, first entered in mid-December, to March 29 to finalise transaction documents, but it did not cite a reason for the delay.
"As more time passes, it just allows AMP to come back with a higher bid," Mark Nathan, a portfolio manager at Fortis Investment Partners.
Discussions with France's AXA SA, which holds 54 per cent of Axa Asia Pacific, have dragged on as the companies await regulatory clearance in one of the few major consolidation opportunities left in Australia's nearly $1.1 trillion wealth management market, also the world's fourth largest.
The Australian Competition and Consumer Commission has said it is more concerned about NAB's offer and is set to rule on AMP's bid on April 1 and on NAB's by April 22.
AMP's bid, trumped by NAB, was rejected by AXA Asia Pacific and its agreement with AXA SA has lapsed. But the No.2 wealth manager has said as time passes and circumstances change it could come back with a new bid, though analysts said funding could be an issue.
An AMP spokeswoman declined comment and officials at an agency representing AXA SA did not return calls seeking comment.
NAB and AMP have been locked in the takeover tussle for the past four months. Under both deals, AXA SA would take the Asia assets with Australian companies holding the Australian and New Zealand assets of AXA Asia Pacific.
In morning trade, AXA Asia Pacific shares were up 0.5 per cent at $6.32, trading 2 per cent below NAB's offer of $6.43 a share, reflecting investors' view that NAB will eventually win the takeover battle.
AMP shares slipped 0.5 per cent to $6.28, roughly in line with the broader market.
Reuters
