AMP CEO Francesco De Ferrari will now refocus on his turnaround strategy after the takeover deal fell apart.Credit:Louie Douvis
Investor sentiment wasn’t improved by its full-year results announced the same morning,which showed assets under management had again declined and the company would pay no final dividend to shareholders.
Mr De Ferrari said he was “sleep deprived” after negotiating with Ares partners in New York and Los Angeles late into Wednesday night over their decision to terminate the takeover,but wouldn’t disclose why the deal fell apart.
“Obviously the share price reacted significantly because of this proposal,” Mr De Ferrari said. “I don’t think any CEO could say they’re happy about the share value.”
AMP has now removed its wealth and bank arms,AMP Australia and AMP Bank,from the sale process and continues to talk with Ares over a potential new transaction that would carve out AMP Capital.
AMP’s share price is about 30 per cent lower than when it launched its three-year strategy to cull unproductive advisers,improve technology and simplify super products in August 2019. Mr De Ferrari said he would continue with the turnaround plan,pointing to the progress that had been made to date – even though he acknowledged there was still a long way to go.
“I appreciate the interest that the share price has moved the other way,[but] you have to look at the progress on the strategy and are we doing the right thing?
“If you look at RBS[Royal Bank of Scotland],it took them nine years to turn this around.