Deals

Axa's IPO Flop Shows Investor Dismay at Insurer's Strategy

  • Deal prices well short of price range to raise $2.75 billion
  • IPO seen underscoring concern at $15.3 billion XL Group buyout
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Investors gave a resounding thumbs-down to the partial spinoff of Axa SA’s U.S. business, dealing a blow to boss Thomas Buberl’s strategy for the French insurer.

The sale of part of its U.S. operations raised almost $1 billion less than the company had hoped for, amid concern among shareholders at the $15.3 billion takeover of XL Group Ltd. which the IPO will help finance.