AMP Bid For AXA Asia Pacific Backed By Majority Of Target's Board

AXA Asia Pacific Holdings Ltd. (AXA.AU) said Tuesday a majority of its independent directors has decided to recommend the latest takeover bid from AXA SA (AXAHY) and AMP Ltd. (AMP.AU)

However, one of the six independent directors is seeking further information before determining their position on the proposal, the company said.

The dissent of one board member could be a stumbling block for the takeover proposal that is conditional on unanimous approval from the independent directors.

Under the proposal, AXA APH minority shareholders would receive AMP shares and cash worth at least A$6.43 for each AXA APH share, subject to the movement of the AMP share price within a certain band.

"A majority of the independent directors believe AMP and AXA SA's proposal provides minority shareholders with appropriate value for their investment in AXA APH, supported by significant downside protection," AXA APH Chairman Rick Allert said in a statement.

"As a result, we believe the proposal is in the best interests of AXA APH minority shareholders," he said.

-By Rebecca Thurlow, Dow Jones Newswires; 61-2-8272-4679; [e-mail]