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Rick Allert, chairman of AXA Asia Pacific Holdings (AXA APH) has said that the $11 billion joint acquisition attempt by AMP, and AXA SA “significantly undervalues” the company.

The bid was immediately rejected by AXA APH, and also includes a $7.7 billion component for AXA APH’s Asian operations, that parent AXA SA wishes to acquire.

Mr. Allert said in a letter to AXA APH shareholders, that the bid has been reviewed by an independent committee and was unanimously dismissed.

“Following the review, the independent board committee formally advised AMP and AXA SA that the proposal had been rejected because it was inadequate and was not in the best interests of AXA APH’s minority shareholders,” Mr. Allert said.

Mr. Allert said that company shareholders owned an “outstanding high growth asset,”, and that the bid ignored several key issues including AXA APH’s influence in Asia and its strategic position in the market.

AMP and AXA SA, in their response to the letter, both said their bid, valued at $5.24 per share, was based on the targets closing price before the acquisition attempt was announced.

“Based on AMP’s closing share price today of $6.35, AXA APH shareholders should be aware that AMP’s implied offer price is $5.68 per share,” the companies said in a joint statement.

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