@angor532 hopefully Merlon Capital Partners are digesting the earnings guidance update provided by Challenger to the market around YTD performance of their life insurance business which yielded c. 1.3% for the first half due to continued headwinds in the sector and realise that AMP saw the writing on the wall a fair way out and acted swiftly to secure the best price at the time. Could they get $3.3B for it now(forget the break-up of cash vs. investment in the new purchaser)? Perhaps not....
Let's hope Macquarie are just doing some good old fashioned downramping on the $1.5B additional remediation costs. Pretty sure the increase in remediation cost of up to $1B across the banks as well would be 'news to them' given they would have been pretty thorough one would have thought as far as their review of the costs prior to the final RC hearings late last year.
Imagine if all Big 4/AMP/IOOF got their calculations wrong by a combined $5B+....unlikely I think.
AMP Price at posting:
$2.61 Sentiment: Buy Disclosure: Held
(20min delay)