Shares in Scandal-Hit Wealth Manager AMP Jump 21% on Takeover Talks

Talks are ‘very preliminary,’ no guarantee of deal, AMP says
AMP shares surge 20%, valuing embattled firm at $3.7 billion

The logo of AMP in Sydney, Australia.

Photographer: Brendon Thorne/Bloomberg

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By Matthew Burgess and Harry Brumpton

October 29, 2020 at 4:51 PM EDT

Updated on

October 30, 2020 at 1:37 AM EDT

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Australian wealth manager AMP Ltd. has received a takeover approach from U.S. private equity firm Ares Management Corp., sending the shares surging and offering investors a clean exit after years of scandal.

The discussions are at a “very preliminary stage” and there is no guarantee of a deal, Sydney-based AMP said in a statement Friday. The shares jumped 20% at the close of trading -- the most in 17 years -- lifting the company’s market value to A$5.3 billion ($3.7 billion).