AMP launches takeover bid
AMP launches takeover bid for AXA Asia Pacific. Ian Verrender reports.
French insurance giant AXA says it will raise 2 billion euros ($A3.23 billion) to finance takeovers, particularly its Australian branch AXA Asia Pacific Holdings (AXA APH).
"We want to go on the offensive," Henri de Castries, chairman of AXA's management board, told reporters, adding that it was "the right moment" to act because of a stabilisation in the macroeconomic climate.
"AXA has resisted the financial crisis well," de Castries said.
"In the coming quarters, we think there will be a certain number of opportunities, especially in emerging markets," he added.
The new shares, with preferential rights for existing shareholders, would be offered at 11.90 euros each, a discount of 29.5 per cent to the closing price on Friday, from November 10 to 23.
AXA said the money would be used to seize opportunities for takeovers, mainly on markets with strong growth potential.
AXA said part of the strategy involved negotiations with the London-based European Bank for Reconstruction and Development (EBRD) to buy up minority stakes in some of its own subsidiaries in central and eastern Europe.
The EBRD holds an average stake of 30 per cent in such subsidiaries, according to de Castries.
Shares in AXA ended up 0.41 per cent at 16.95 euros on the Paris stock market, where the CAC 40 index showed an overall gain of 2.11 per cent.
On Saturday, with AMP Ltd, AXA SA made an offer to buy the 45-per cent stake of shares it does not already own in Axa APH.
The headline value of the complex offer was $A11 billion.
On Monday, Axa APH rejected the offer on the grounds that it significantly undervalued the business. The rejection came from a committee of independent directors.
A source close to the matter told AFP that "talks are continuing and AXA could make a higher offer".
AFP
