takeover at $7.55 whos herd rumour, page-3

ok, I found the article. apologies

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Mason's posting to spur more AMP talk
June 18, 2005

AMP has appointed investment banker Peter Mason as its new chairman in a move likely to fuel more rumours of corporate activity for the funds management group.

Since it hived off its UK operations, AMP has been the subject of a number of takeover and merger rumours, including supposed deals with ANZ, Westpac and Axa Asia Pacific.

On Friday, speculation was rife in the market that UK group Friends Provident was about to bid $7.55 for AMP.

But analysts dismissed the talk, given the UK company has a market capitalisation of about $9 billion compared with AMP's $12.3 billion. It is also trading on a lower price to earnings multiple, making it difficult to justify what would be an expensive acquisition.

Even so, AMP closed up 16c on Friday to $6.78, in heavy trading.

"AMP is surrounded by more rumours than any other stock I cover, so it's hard to know what to listen to," one fund manager said on Friday.

Mr Mason replaces Peter Willcox, who will step down in September to focus on family and his other chairman's role at Mayne.

The 59-year-old former JPMorgan chairman is well liked by investors. He has also held executive roles at Ord Minnett, Lloyds Banking Group and Schroders. He joined AMP's board just before its demerger in late 2003.

Mr Willcox flagged his retirement at the company's annual meeting last month, telling shareholders that becoming chairman of AMP had never been part of his plans.

He joined the AMP board in September 2002 and at his first board meeting, in London, chief executive Paul Batchelor was sacked. Within five months, chairman Stan Wallis had resigned and Mr Willcox was put in the role.