UPDATE: AXA Asia Pacific Board Split On Latest Bid From AMP
November 15 2010 - 7:43PM
Dow Jones News
The board of AXA Asia Pacific Holdings Ltd. (AXA.AU) is split on
whether to recommend the latest takeover bid from AXA SA (AXAHY)
and AMP Ltd. (AMP.AU)
The target said Tuesday that a majority of its independent
directors has decided to recommend the A$13 billion cash and stock
proposal in the absence of a superior proposal and subject to the
review of an independent expert.
But one of the six independent directors is seeking further
information before deciding whether to back the proposal, the
company said.
The dissent of one board member could be a stumbling block for
the takeover proposal that is conditional on unanimous approval
from the independent directors.
Under the proposal, AXA APH minority shareholders would receive
AMP shares and cash worth at least A$6.43 for each AXA APH share,
subject to the movement of the AMP share price within a certain
band.
AXA APH Chairman Rick Allert is among the directors that support
the offer.
"A majority of the independent directors believe AMP and AXA
SA's proposal provides minority shareholders with appropriate value
for their investment in AXA APH, supported by significant downside
protection," Allert said in a statement.
"As a result, we believe the proposal is in the best interests
of AXA APH minority shareholders," he said.
At 0010 GMT, AMP shares were down 1 cent at A$5.44 and AXA APH
shares were up 1.5% at A$6.26, in overall market up 0.3%. The share
price reaction suggests investors are hopeful the takeover will go
ahead.
A deal would be a coup for AMP, whose previous bid was rejected
by the target in favor of an all-cash offer from National Australia
Bank Ltd. (NAB) in December.
The NAB deal was later blocked by the Australian Competition and
Consumer Commission, which said it wouldn't oppose a takeover by
AMP.
AXA APH said the offer represents a 50% premium to the A$4.30
closing share price of the target on Nov. 6, 2009, the last trading
day prior to the announcement of the initial proposal from AMP and
AXA SA.
-By Rebecca Thurlow, Dow Jones Newswires; 61-2-8272-4679;
rebecca.thurlow@dowjones.com
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