AXA Raising $3 Bln To Finance Acquisitions

PARIS (AP) — French insurer AXA SA said Monday it plans to raise euro2 billion ($3 billion) from shareholders to finance its global expansion, including its attempted takeover of Australian insurer AXA Asia Pacific Holdings Ltd.

Paris-based AXA, one of the world's largest insurance companies, said its leading shareholders had already agreed to take up their full allotment of new shares, with the remainder fully underwritten by a syndicate of banks.

AXA's proposed 11 billion Australian dollar ($10.3 billion) buyout of minority shareholders in AXA Asia Pacific was rejected by that company's board earlier Monday, saying the offer significantly undervalued the company.

Speaking on a conference call with reporters, AXA Chief Financial Officer Denis Duverne said AXA would discuss the offer with AXA Asia Pacific's board and "try to understand the board's reaction and look for points that need clarification."

Duverne said about half of the capital increase was dedicated to completing the AXA Asia Pacific acquisition, with the remainder to finance other acquisitions in Central and Eastern Europe.

AXA Asia Pacific, which is based in Melbourne, operates insurance and wealth management businesses in eight Asian countries as well as Australia and New Zealand. AXA SA acquired 51 percent of the company in 1995.