AMP has failed to sign a deal with US investment firm Ares and has officially ended talks, almost six months after receiving a takeover bid which sent the wealth giant\u2019s shares soaring.<\/p>\n
AMP will continue to splinter AMP Capital and manage its private markets assets (infrastructure and property) separately from its public markets assets (equities and fixed income).<\/p>\n
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AMP chair Debra Hazelton says the group was not able to reach an agreement with Ares. <\/span>Credit:<\/span>Louie Douvis<\/cite><\/p>\n AMP chair Debra Hazelton said the wealth giant had \u201csubstantial and constructive discussions\u201d with Ares regarding the sale, but ultimately these had failed.<\/p>\n \u201cWe have not been able to reach an agreement that would deliver appropriate value for our shareholders,\u201d she said in a statement.<\/p>\n \u201cThe board has therefore concluded a demerger provides investors with the strongest value outcome, creating two more focused entities, with the agility to pursue new growth in opportunities in their respective markets.\u201d<\/p>\n This internal restructure is also not certain \u2013 subject to board, shareholder and regulatory approval.<\/p>\n AMP announced last September it was selling parts of the business but has closed the sale process without sealing any deals. Ares was the only firm to emerge when it launched a takeover last October, which sent AMP\u2019s share price soaring by almost 20 per cent.<\/p>\n However, in February, Ares withdrew this offer after completing due diligence and there has since been an offer to acquire part of AMP Capital, but this too has now been withdrawn.<\/p>\n