The Board of Directors of AXA Asia Pacific (AP) has been given 12 days to come to a decision. The context is the takeover bid by its French parent AXA SA and Australian wealth manager AMP. The 16% higher revised offer equates to $ 6.22 per share.

Today AXA AP shares are priced at A$ 5.86 per share. There are reasons for AXA AP to hold out. As Ross Barker, managing director of the Australian Foundation Investment Company, the fourth-largest shareholder of AXA AP said, “We like the Asian business; we’re not particularly keen to surrender that. We’ll wait to see what the independent directors say. Our fundamental view is we want to stick with what we’ve got”.

If the deal goes ahead, AMP will receive AXA AP's Australian and New Zealand assets, while AXA SA will get the company's Asian businesses. According to the proposal, AXA AP shareholders will receive 0.6896 AMP share for each stock held, thereby ending up owning 24 % of AMP. Further, two AXA AP directors will be invited to join AMP’s board.

AXA AP Chairman Richard Allert is of the opinion that the proposal undervalued the company. The revised offer values the Australian and New Zealand business of AXA AP businesses at 18.6 times estimated earnings, AMP said.