Financial services giant AMP (ASX:AMP)
has broken talks with LA-based investment manager Ares (NYSE:ARES) over a takeover deal, as the two parties failed to reach a conclusive agreement.
AMP drew significant interest from the New York-listed company, after announcing its intention to sell some assets last year. Despite holding “substantial and constructive discussions” with Ares, AMP did not receive an offer that the company considered would “deliver appropriate value” for its shareholders.
As an alternative restructuring solution, the company has proposed a demerger into two separate entities “with the agility to pursue new growth in opportunities in their respective markets”. This move will ultimately detach the company’s private markets assets from its public market assets.
Pending board, shareholder and regulatory approval, the internal restructure will divide AMP Capital into a infrastructure and property division and equities and fixed income division.
AMP has also released a statement announcing the departure of senior officer Boe Pahari, following his removal as CEO due to a sexual harassment dispute last year.
Shares in AMP (ASX:AMP)
last traded at $1.12