So will the AMP have another run at AXA Asia Pacific?
In releasing its 2009 profit result yesterday the company certainly raised the notion, and the competition regulator, the ACCC, has certainly suggested that the AMP might have a better chance of winning control of AXA’s local operations than the apparently successful bid from the National Australia Bank.
The NAB topped the AMP offer with a $13.3 billion bid, but in an issues paper last week, the Commission left a strong impression that a successful NAB offer might limit competition in the funds management area.
It wasn’t so negative about the AMP and has promised a decision on both bids by March 17.
The Commission lumped both bids together instead of offering separate assessments, as it first suggested.
That’s now left a gap for the AMP to charge through, if it wants to take another pass at AXA AP
AMP chief executive Craig Dunn said yesterday that AXA Asia Pacific remained a strategically attractive target and he hinted that AMP could still improve its offer.
"AXA remains strategically attractive to us.
"We are continuing to consider our position and will do what is in the best interests of shareholders," Mr Dunn said in the briefing and in the statement to the ASX.
"AMP has a long history of adapting its business to meet evolving consumer needs, responding to regulatory change and competing in a dynamic market environment.
"We will continue to adapt and grow.
"The more the circumstances continue to change, the more the time moves on, the more flexibility we have on the bid, ‘Mr Dunn said.
On Wednesday, AXA Asia-Pacific reported its best annual results in six years and promised strong growth in 2010.
The group, 54% owned by France’s Axa (AMP’s former partner in its offer), said 2009 net profits had climbed to $679 million, from the 2008 loss of $279 million, boosted by strong performances at its south-east Asian and Australian operations as financial markets in the region rebounded strongly.
AXA Asia Pacific has already rejected AMP’s offer.
Under both the AMP and NAB proposals, AXA SA would retain the Australian subsidiary’s Asian operations. The French insurance giant has yet to reveal its position on the two proposals.
AAP and other newsagencies said Mr Dunn mentioned the ACCC’s comments that it would be better for Australia to have a strong wealth manager in a merged AMP-AXA to compete against the country’s four big banks.
"Australia will be better off if we have a fifth pillar, which is a non-bank," he was quoted as telling reporters.
The group lifted net profit 27% in 2009, helped by the same stronger market conditions that helped AXA AP.
Net profit for 2009 was $739 million, up from $580 million in 2008.
Excluding accounting mismatches, net profit was $740 million, up 75%. Underlying profit was $772 million, down 5%.
AMP said its final dividend for 2009 would be 6c a share, making 30c for the year compared to 40c in 2008.
It’s now up to the AMP board and management to take advantage of any opportunity the ACCC might give it.
AMP shares fell 11c, or 1.7%, to $6.16.
