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MELBOURNE: Financial services group AXA Asia Pacific on Monday rejected an 11.04 billion dollar (10.13 billion US) takeover offer from its French parent AXA SA and rival AMP, saying it undervalued the firm.
The Melbourne-based AXA said the offer, one of the biggest worldwide this year, underestimated its Australian and New Zealand businesses, its foothold in growing Asian markets and the expected economic rebound.
"It is the unanimous view of the Independent Board Committee that the proposal significantly undervalues AXA APH (Asia Pacific Holdings)," chairman Rick Allert said in a statement.
"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."
Under the deal, AMP would buy all AXA Asia Pacific shares and merge its Australian and New Zealand shares with its own, while AXA SA, currently the majority shareholder, would purchase its Asian businesses.
The deal would consolidate AMP as Australia and New Zealand's second largest wealth manager behind Australia's Commonwealth Bank, according to AMP.
AXA Asia Pacific shares soared 33 per cent to 5.74 Australian dollars (5.31 US) at the close, above the bid offer of about 5.34 dollars per share.
- AFP/so
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