At time of writing, shares of AMP Limited [ASX:AMP] have jumped a whopping 8.9%.
It is now trading at $2.69 per share.
It’s been a rollercoaster few days for the stock and the most recent news is tantalising shareholders.
AMP share price reacts to Macquarie acquisition report
The Australian today reported that Macquarie was considering bidding for the embattled company, citing unnamed sources.
Markets have reacted positively to the news with the stock surging up.
This reverses some of the share’s 30% falls in the days after the announcement — that the company would be selling their life insurance arm.
Yesterday the stock was up on the news that the company would be restructuring following its portfolio review.
The company reported last week that it was haemorrhaging customers from its wealth management division.
Is this the start of AMPs revival?
Let’s be clear here, if Macquarie makes this move it could be many months before it is realised.
Additionally, the report out of The Australian did cite unnamed sources.
So it must be taken with a grain of salt.
As Michael McCarthy, chief strategist at CMC Markets, says of the potential acquisition:
‘The idea that Macquarie would get back into this …or that they would make a significant decision like this ahead of the uncertainty next year following the conclusion of the Royal Commission, is to my mind insane.’
Insane could be a fair assessment.
But despite the recent difficulties AMP has faced, it remains a profitable business.
Macquarie is likely licking its chops.
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