AMP chief quits amid turmoil
(Australia) - The chief executive of Australian bancassurance group Paul Batchelor has resigned following a horror week for the company which saw its share price post a series of fresh record lows.
Batchelor's resignation, announced on Tuesday September 24, came after new concerns about the company's capital position in the UK, where it draws around 60 percent of its revenue.
AMP shares, issued in the 1997 float at A$16, plumbed a record intra-day low A$11.25 when the stock returned from a trading suspension on Monday September 23.
The most recent falls come after the company announced a A$750 million capital raising through its Henderson Global Investors subsidiary.
Alarm bells rang in the market when the prospectus revealed that AMP's British unit Pearl Assurance had fallen behind minimum capital adequacy levels required by UK regulators.
AMP released a statement saying another 500 million pounds would be pumped into Pearl's capital position, which would be restored by the end of the year.
The dive in the share price fuelled speculation of a takeover bid from either the National Australia Bank or the Commonwealth Bank of Australia. More than A$6 billion has been wiped from AMP's market capitalisation so far this year.
Batchelor will be replaced by current chief operating officer Andrew Mohl, who will serve as interim chief executive officer.
Batchelor's resignation follows closely behind that of former chief financial officer Marc de Cure, who resigned earlier in September.
AMP shares, issued in the 1997 float at A$16, plumbed a record intra-day low A$11.25 when the stock returned from a trading suspension on Monday September 23.
The most recent falls come after the company announced a A$750 million capital raising through its Henderson Global Investors subsidiary.
Alarm bells rang in the market when the prospectus revealed that AMP's British unit Pearl Assurance had fallen behind minimum capital adequacy levels required by UK regulators.
AMP released a statement saying another 500 million pounds would be pumped into Pearl's capital position, which would be restored by the end of the year.
The dive in the share price fuelled speculation of a takeover bid from either the National Australia Bank or the Commonwealth Bank of Australia. More than A$6 billion has been wiped from AMP's market capitalisation so far this year.
Batchelor will be replaced by current chief operating officer Andrew Mohl, who will serve as interim chief executive officer.
Batchelor's resignation follows closely behind that of former chief financial officer Marc de Cure, who resigned earlier in September.
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