AMP halts share trading - NZSE

By NZPA

Monday 18th November 2002

Shares in troubled financial services company AMP Ltd were placed on a trading halt pending an announcement this morning, the New Zealand Stock Exchange said.

The shares last traded up 28 cents at $NZ13.98 after the Australian-based company announced last week it was exiting its banking business and cutting over a thousand jobs as part of a major restructuring.

The changes are expected to release about $A500 million ($NZ569.28 million) in capital by the end of 2003, which chief executive Andrew Mohl said could be used to repay debt or invest in other parts of the business.

In New Zealand, AMP Bank's $NZ2.7 billion lending business, its credit card portfolio and deposits business are up for sale.

AMP's disclosure statements show the bank has lost $NZ56.75 million in the four years since registering as a bank in New Zealand in 1998.

Michael Guggenheimer, head of AMP retail banking in New Zealand and Australia, said on Thursday that most of the 70 banking staff in New Zealand were in Auckland, but the number of jobs at risk depended on what the portfolio purchasers decided.

Comments from our readers

No comments yet