Insurance News: 09 Feb 2010
AMP is pinning its hopes of securing AXA Asia Pacific on the regulatory process governing its battle with National Australia Bank, which it believes will frustrate the bank's proposed partnership with the French group AXA SA...
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An extended timetable to complete the deal has become critical to the French group, which owns 54 per cent of AXA AP, and now wants to bring to an end a three-month fight.
While NAB also wants to shorten the process, it could take until midway through this year before AXA AP falls within its grasp, and enables it to sell its Asian operations to the French for $9.6 billion.
Sources close to AMP have indicated that any delays in NAB's timetable - particularly conditions that could be imposed by the Australian Competition and Consumer Commission - are likely to favour its position given that it believes it can deliver what AXA SA wants much more quickly than its banking rival.
AMP is due to receive its adjudication from the ACCC tomorrow after an investigation into the implications of its $4.4 billion offer for AXA AP's Australasian businesses. The offer was rejected and then lapsed following NAB's intervention.
While its bid is no longer ''live'', a favourable response from the commission would allow AMP to re-enter the game if the NAB bid hits trouble in the coming weeks.
NAB's offer of $4.6 billion is being scrutinised by the ACCC, which is not expected to report untilnext month.
Talks between NAB and AXA SA began in Paris and Melbourne yesterday. AMP said yesterday it ''continues to consider its position''.
SOURCE: Danny John - Sydney Morning Herald
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