AXA Asia Pacific Holdings spurns $10B takeover bid

Australian insurer AXA Asia Pacific Holdings rejects $10B bid from AMP, AXA SA

• On 2:03 am EST, Monday November 9, 2009

MELBOURNE, Australia (AP) -- Australian insurer AXA Asia Pacific Holdings Ltd. said Monday it had rejected a $10 billion takeover bid from AMP Ltd. and its French parent, AXA SA.

The cash and share offer would have been among Asia's biggest takeovers this year and resulted in the break up of AXA Asia Pacific, the Australian unit of giant French insurance company AXA SA.

AXA Asia Pacific Chairman Rick Allert said the company's independent board committee agreed unanimously that the proposal, amounting to 11 billion Australian dollar ($10.13 billion), significantly undervalued the company.

"The proposal has been received against the backdrop of recent weakness in global financial markets and before the growth of our Asian operations is fully reflected in our profitability," Allert said in a statement.

The proposal valued AXA APH shares at AU$5.34 each, more than 20 percent above Friday's closing price of AU$4.30.

Allert said his company would consider a better offer.

"If they come back we'll look at whatever they come back with," Allert said.

Under the bid made Saturday AMP, an Australian fund manager and insurer, would buy all the shares in AXA APH, including AXA SA's controlling stake. It would then sell back AXA APH's Asian assets to AXA SA, but keep the Australian and New Zealand businesses.

AXA Asia Pacific, which is based in Melbourne, operates insurance and wealth management businesses in eight Asian countries as well as Australia and New Zealand. AXA SA acquired 51 percent of the company in 1995.

News of the takeover effort sent shares in AXA Asia Pacific Holdings surging more than 32 percent to AU$5.70.

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