FINANCIAL services company AMP is considering a $4 billion deal that would deliver ANZ a controlling stake, in return for the bank's ING wealth management business.
Sources close to AMP said the proposal, which would give ANZ roughly 30 per cent of AMP, was a ''plan B'' after National Australia Bank moved in on its target, AXA Asia Pacific.
In league with French group AXA, AMP bid $12.8 billion in scrip for AXA AP's domestic operations last year but its offer was rejected and subsequently trumped by a $14.2 billion offer from NAB.
The NAB offer has been accepted by the AXA AP board.
Last week, AMP chief executive Craig Dunn insisted his company was still in the race for AXA AP and urged the Australian Competition and Consumer Commission to block NAB's offer.
The French parent has yet to endorse the NAB offer, despite the superior price, while it awaits a decision from the Australian competition regulator. It is believed the French are keen to wrap up the deal quickly, so AXA SA can proceed with its Asian expansion, and will back whichever organisation can proceed quickest.
But while AMP's primary focus remains on AXA AP, it has identified a range of ''fall-back'' options to defend itself if the bid fails.
And against concerns that the banking and financial services industry is becoming too concentrated, the proposal to buy ING from ANZ would help circumvent competition concerns.
For ANZ's part, said one source, the deal would provide a large distribution channel for its products through AMP while allowing ANZ's chief executive Mike Smith to proceed with his expansion into Asia.
ANZ has some 10 per cent of the Australian retail superannuation market versus 18 per cent for AMP and 25 per cent for NAB and AXA combined. In retail managed funds the market shares are 8 per cent, 12 per cent and 21 per cent respectively.
AMP's board apparently has concerns about the limited scope for growth if its tilt for AXA AP fails.
Although sources last night said the matter had not been discussed at board level and there had been no ''official'' discussions between the AMP and ANZ, they indicated the proposition ''had merit''.
