Some Money Managers Pan AXA/MONY Deal
A day after AXA Financial Inc. agreed to pay $1.5 billion for The MONY Group Inc., some money managers said the price was too low.
The deal price amounts to $31 per share, which would give shareholders a premium of 32% over the 1998 initial public offering price. The stock closed at $29.33 at end of day Sept. 17.
MONY reported $21 million in net income for the second quarter on $605 million in revenue and $55 billion in assets.
New York-based AXA Financial, the U.S. arm of AXA S.A., Paris, would get Advest Inc., Hartford, a major regional securities broker, along with a life insurance company founded in 1843.
The deal would make AXA Financial a player in life insurance wholesaling and give it access to MONYs impaired risk and corporate-owned life insurance products.
MONY has 1,300 career agents, and MONY agents closely resemble AXA Financials 5,000 agents, according to AXA Financial President Christopher Condron.