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AMP still waiting on UK offers
By CNN's Geoff Hiscock, Asia Business Editor
SYDNEY, Australia (CNN) -- Potential bidders for the UK businesses of embattled Australian insurer and funds manager AMP have yet to make any detailed proposals, CEO Andrew Mohl says. Mohl released an update on AMP's demerger proposal, saying he was concerned about the impact of recent speculation on shareholders. AMP shares have been dumped since the May 1 demerger announcement, touching a record low of A$4.26 last Thursday, August 7. They closed Monday at A$4.52, a gain of 1.35 percent on Friday's final price, but are still down 60 percent for the year. AMP, which listed at A$18.90 in June 1998 and touched A$22.00 in June 2001, has been hit hard by losses in its UK insurance operations stemming from the plunge in global equity markets. Under the proposed demerger, AMP is planning to hive off its loss-making UK operations into a separate listed company. It also said it would take a writedown of A$2.6 billion ($1.7 billion) and has raised A$1.2 billion in fresh capital from institutional investors. Mohl confirmed on Monday that AMP had received "several approaches" for its UK businesses, which include the NPI pension business, Pearl Assurance, London Life and Towry Law. He said none of these approaches had yet led to a detailed proposal to put to the AMP board. Any formal offer, if appropriate, would be brought to AMP shareholders. If this happened, the demerger proposal and the related capital restructuring would not proceed. Mohl said AMP will release its half-year results on August 20, with preliminary results for operating margins, underlying group earnings and UK writedowns "broadly in line" with the guidance given on May 1. AMP's demerger is targeted for completion by the end of 2003. Assuming it is approved, there will be two companies listed on the Australian Stock Exchange -- the 'new AMP' and the 'new Henderson' (the funds management arm). Henderson may also seek a listing on the London Stock Exchange.
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