AMP Ltd's (ASX:AMP) $14 billion bid for rival fund manager AXA Asia Pacific Holdings Ltd (ASX:AXA) has secured the unanimous backing of AXA's board, after a final dissenting director gave the deal his support.
AXA says the director, who requested more information on the deal to ensure it was in the best interest of the company's minority shareholders, is satisfied with the offer.
The support of all directors was a condition of the agreement. The news comes as a significant step forward for AMP and its partner AXA SA of France.
If the deal goes through, AMP will snap up AXA's Australian and New Zealand businesses for $14.1 billion while French insurer AXA SA will acquire the Asian assets for $10.4 billion dollars, an $800 million increase on its previous offer.
The deal will also mark the second largest takeover in Australia's financial services sector since Westpac Banking Corporation Ltd (ASX:WBC) acquired St George Ltd in May 2008.
For the half year ended 30 June 2010, AXA reported a net profit of $217 million.
AMP Price at posting:
$5.18 Sentiment: None Disclosure: Held
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