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Amp Refutes Share Valuation

Illawarra Mercury

Friday March 17, 2000

An analyst's report valuing AMP Ltd shares at $12 each has been slammed by the company and has forced at least one other analyst to warn his clients to ignore its contents.

On Wednesday, a report by BNP Equities insurance analyst Steve Lander recommended that AMP shareholders off-load their shares because the financial services group was overgeared and undercapitalised.

AMP immediately contacted Mr Lander yesterday, disputing all the key conclusions.

It is understood that after meeting with AMP representatives, Mr Lander agreed to revise his assessment, although there remain areas where each party has agreed to disagree.

Meantime, an insurance analyst at another investment bank said he has sent his clients an advisory, warning them to disregard anything they may have read concerning Mr Lander's report.

The analyst, who did not wish to be named, said he believed AMP was ``fair value at around the $16 mark," although its price has been supported by recent takeover speculation.

``Arguably, there could be a little more upside if slated cost reductions are achieved," he said.

Shares in AMP fell 15.5 to $15.80 yesterday.

© 2000 Illawarra Mercury

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