AMP’s board has decided to undertake a portfolio review to assess “all opportunities in a considered and holistic manner” and will evaluate the merits, separation costs and dis-synergies of any separation, with a focus on “maximising shareholder value”.
“The board believes that AMP has high-quality businesses with significant strategic value,” said AMP chair Debra Hazelton.
“The board and management firmly believe in our existing strategy, including a re-pivot to private markets in AMP Capital and are confident that this will deliver long-term value for shareholders. However, we have taken a decisive step to undertake a portfolio review to ensure we appropriately assess all options to maximise shareholder value in a considered and disciplined manner.”
So glad I sold shares in AMP in 1999 for around $22 – that American CEO is still laughing $9 million to leave
Credit Suisse, Goldman Sachs and King & Wood Mallesons have been appointed as AMP’s advisers to manage the review. Don’t ask a surgeon if you need surgery.
Should have remained as a mutual society and then the clients of AMP advisers and the superannuation and insurance policy holders would effectively be the shareholders.
The demutualisation of these organisations and the intervention of the banking sector into financial services has been a complete failure of massive proportions.
To be honest, this is a spiritual lesson in “Karma 101”. AMP as an organization didn’t penalize the bad apple advisers back in the 1990’s that stole/ripped off client money by re-writing completely satisfactory Whole of Life policies simply to earn more upfront commission. It was never fully dealt with, and AMP allowed stupid clients to simply not realize the true extent of the financial destruction that occurred as a result of this practice. And before you ask, yeah I was around in the 1990’s and saw it happen. It was a gouge fest. It was before proper oversight occurred. And AMP never properly righted the wrong to their own customers. That is the rot. That is the rot that actually festers over time like a cancer. This Karmic issue has been building for over 20 years. Most AMP advisers are honest, have integrity and always act in their client’s best interest. The problem is AMP turned a blind eye and never dealt with the rot that was so obvious back in the 1990’s. You can’t build a solid structure on a foundation that lacks integrity. Blame the management back in the 1990’s … De Ferarri is simply the messenger sent from the Karmic gods.
Please note the monster garage sale at AMP building in Sydney for September 21st. Lots of stuff available, old client records, how to build culture books ( unread as new) , old bolr contracts ( unsigned) , gold tea cups, and a old ferrari
“re-pivot” says Debra Hazelton. Oh, you’ll fit right in at AMP where they use words like “glide path” for exiting Advisers and “impactful” for changes to BOLR.
What is left to sell and who too?
Guessing they’ll offload the Super Concepts bucket shop first?
Need to pay De Ferrari’s Bonus of $1.8M after a $2.5B loss. Nothing like setting the bar high at AMP.
So the new Chairman has sent a clear signal that the strategy is doomed to failure. Odds on Francesco will be gone by Christmas.
…there’ll be 8 Amp bottles standing on the wall and if one Amo bottle should blow up and finally fall, there’ll be 7 Amp bottles…
What a complex set of words to use as a description for we f**#ed it up big time.
AMP knew it was headed for a massive fall and at the same time thought they would also screw over the very advisers that had provided the client business to them over many years in order to save money and break a contractual agreement.
This is and was a massive misuse of corporate power against their very own distribution arm.
If ever there was an “Erin Brockovich” moment ,it is now.
is this a polite way of saying Frank and Murray got it wrong?
‘Maximize share holder value’??? Since when have they done anything to maximize share holder value over the past decade? Did the purchase of AXA add share holder value? Did doubling down on SMSF administration add value? Share price is down 70% over 5 and 10 years. Senior management and Board of AMP are an embarrassment. yet no one ever held to account.
They still don’t get it. It is not just about shareholder value, it’s about culture, morals, and most importantly, your other stake holders, such as your adviser network, your mum and dad clients. It’s the people that make AMP and without them, there would be no AMP and therefore no shareholder!!!! If you look after your stakeholders and work as a true partnership, the end result would be happy shareholders, but if you destroy everything that is in your pathway to simply make shareholders happy by having a higher a shareprice or perhaps using the proceeds from the sale of your asset to issue dividends, which is equivalent to bribery, it becomes a vicious cycle. Wake up AMP. You are dying of a slow death and anything you do now, is not going to bring you back to life. Just pull the plug and put everyone out of its misery!
Giant trash or treasure
beginning of the end for the AMP brand?
FIRE SALE
Bye