French insurance giant Axa SA has backed away from its proposal to acquire the remaining 48.3% of shares in Axa Asia Pacific Holdings after talks with the local board broke down.

Axa SA’s initial proposal was $3.75 a share, payable 50% in cash and 50% in scrip, but after payment of the interim dividend of 5.25 cents on October 1 the offer was reduced to $3.6975 a share.

The offer was later raised to $4.05 in cash, but Axa Asia Pacific Holdings Chairman Rick Allert says the independent directors were unanimous that they could not propose a scheme of arrangement or make a recommendation that shareholders vote for it.

He said Axa Asia Pacific Holdings shares on the Australian Stock Exchange have recently been above $4.05. “We look forward to Axa Asia Pacific Holdings remaining a successful and meaningful contributor to the worldwide Axa SA group, and continuing to perform strongly for our shareholders.”