Ares Management calls off A$6B AMP bid

Ares Management Corp. withdrew its nonbinding and indicative A$1.85 per share takeover offer for AMP Ltd., following detailed discussions.

Together with the announcement of its results on Feb. 11, the Australian wealth management group shared the decision, noting that its engagement with the U.S.-based investment manager continues in relation to its AMP Capital division, which manages A$189 billion in assets across real estate, infrastructure and equities.

Ares Management was earlier reported to have been in negotiations with Bank of Queensland Ltd., Bendigo & Adelaide Bank Ltd. and Macquarie Group Ltd. for a joint bid for AMP's banking division as part of the A$6 billion takeover offer for the group.

The proposal came as AMP conducts a portfolio review after an increased interest in its assets and businesses.

The company said its review of AMP Australia, which comprises the group's Australian wealth management and AMP Bank businesses, and its New Zealand wealth management business is now complete, paving the way for a transformation process that is likely to deliver optimal outcome for its shareholders.

Meanwhile, its review of AMP Capital will continue as the company explores options to maximize business growth.