A new twist in the battle for Axa Asia-Pacific Holdings (Axa APH) centres on a media report claiming AMP has a “Plan B” involving the ANZ Bank if its bid against rival National Australia Bank (NAB) is unsuccessful.

According to Fairfax newspapers, AMP and ANZ talked informally in December about a $4 billion deal where ANZ would sell its wealth management assets to AMP in return for a 30% stake in the insurer.

But the bank is hosing down the rumour, saying its focus is on organic growth for its ING wealth management operation that it took full control of in September.

In a market update for the four months to January 31, ANZ says the integration of ING assets is on track, with improved conditions reflecting in the Australian and NZ region performance. 

Meanwhile, Morningstar analyst David Walker says the market is pricing into AMP’s stock the strong possibility of a big equity issue that would allow it fund an all-cash offer of $6.80 a share for Axa APH, or more specifically its Australian and NZ operations, to counter the NAB bid of $6.43.

In February shares in the strategically boxed-in AMP drifted from $6.75 down to $5.90.

“AMP is clearly counting on the [Australian Competition and Consumer Commission] knocking back NAB’s proposed acquisition of Axa APH, but I don’t think the concerns they have indicated so far are going to be strong enough,” Mr Walker told insuranceNEWS.com.au.

“Whether they’d knock back an acquisition of AMP is an entirely different question.”