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French insurance giant Axa today unveiled a major restructuring attempt including a 2 billion (£1.7 billion) rights issue to fund a push into Asia.
However, it immediately ran into difficulty as a major part of the move was rejected by the group's independent directors.
As a central tenet of the deal, Axa's parent company, Axa SA, had teamed up with AMP, the Australian insurer, to launch a bid for its separately-quoted Axa Asia Pacific Holdings division.
The deal would have seen the parent company able to reap more profits directly from Asia, as it currently only owns 54% of Axa APH. It was the second time it has attempted to buy back the business which is quoted on the Sydney stock exchange.
Analysts said they were not surprised at the knockback, saying the deal had been priced way too low.
This offer is not anywhere near acceptable, said Rob Patterson, at Argo Investments, which owns Axa APH shares. It looks pretty low ball. The Asia business of Axa Asia Pacific is a growth option.
Shares of the subsidiary rocketed 33% in the hope of a higher bid.
Axa APH chairman Rick Allert said he won't accept an offer at these levels.
If they come back, then we'll look at whatever they come back with, he said.
