Axa SA has confirmed its joint bid with AMP to take over Axa Asia Pacific Holdings (Axa APH) has stalled, claiming local directors are refusing to enter into negotiations over initial terms of the proposal.

In a statement late last week the parent company says the group of independent directors at Axa APH “has not been willing to engage in any discussions or clarifications with respect to the terms of the joint proposal” with AMP.

Axa SA claims the $11.7 billion proposal of $5.76 per share includes a 42% premium to the share price of the local operation on November 5. The Axa APH closing share price on Friday was $5.82.

“At this stage, Axa and AMP have not withdrawn or otherwise modified their joint proposal, which remains open and valid in all respects,” Axa SA said.

Axa APH’s institutional investors have made it clear they are opposed to the proposal in its current form, saying it substantially undervalues the company’s prospects for growth.

AMP CEO Craig Dunn spruiked the benefits of the proposal in an address to the Trans Tasman Business Circle in Melbourne last week.

“Australians need and deserve the strongest possible non-bank competitor in the important wealth management sector,” he said. “By combining AMP and Axa APH, we can build a new financial force that will deliver superior benefits to the customers and shareholders of both companies.

“A combined AMP and Axa APH will bring more affordable financial advice to many more Australians.”