US investment firm withdraws bid for Aussie wealth giant

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US-based investment management firm Ares Management has walked away from a A$6.4bn (£3.5bn, $5bn, €4bn) deal to buy Australian wealth manager AMP.

The US business told the wealth firm it doesn’t want to proceed with its bid for the whole company, but it is still interested in its asset management unit.

In a stock exchange filing, AMP said: “Following detailed discussions, AMP has been advised by Ares that it does not intend to proceed with its non-binding indicative proposal for 100% of AMP of A$1.85 per share.

“AMP continues to engage constructively with Ares in relation to AMP Capital as part of the portfolio review.”

This may result in AMP being forced to sell its business in pieces rather than as a whole as the firm first intended to.