If US private equity group, Ares follows through with a complete bid for all of AMP’s shares at $1.85 each, then the bid is done and dusted.
AMP yesterday revealed that a filing Ares made with the US Securities and Exchange Commission had indicated a bid price for AMP shares of $1.85 cash each.
That compares to $1.28 before Friday’s announcement of an approach from Ares.
The $1.85 a share values AMP at around $6.4 billion and is rich enough to force other bidders (if they are there) from the field and leave the US group alone.
AMP shares ended at $1.68, up 9.8% (after a 20% jump last Friday).
The market knows the deal is done if the bid finally appears in a complete and binding form.
But it is early days.
Ares said in its Securities and Exchange Commission: “The diligence and discussions are very preliminary and there is no certainty that any transaction will occur on the proposed terms, within any particular time frame, or at all.”
Some brokers reckon Macquarie Group could emerge with a bid.
Macquarie will have the chance to comment on any interest with its interim results being announced this Friday.
