AXA buys €441 million Finaxa exchangeables, makes offer for remainder

By Angela McDaniels

Seattle, Nov. 4 - AXA Group said it bought €441 million of the bonds exchangeable into its stock with a maturity date of Jan.1, 2007 issued by Finaxa in 1998.

The Paris-based insurance company paid €622 million or €118.10 per bond, including accrued interest.

Through the transaction, AXA now owns 42.19% of the bonds originally issued and 42.33% of the amount now outstanding.

The transaction occurred after the closing of the Euronext Paris market on Thursday through a block trade.

The group said the action allows it to neutralize the potential dilution that may result from the issuance of new AXA convertible bonds to holders of the original exchangeables on completion of the merger between AXA and Finaxa on Nov. 21.

In order to ensure equal treatment of all bondholders, AXA said it is offering to buy the remaining exchangeables on the French market from Nov. 7 to Nov. 15 at a price of €118.10 each. After that, AXA reserves the right to buy the convertibles on the French market, at its discretion, at the market price until Nov. 21, the date on which the listing and trading of the convertible will be suspended in accordance with the proposed calendar for the AXA-Finaxa merger.

The offer will be conducted by JPMorgan (+ 33 1 40 15 41 53), acting as agent on behalf of AXA.

Finaxa is a holding company whose main subsidiary is AXA.

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