AMP mulls cash-call as split looms

FINANCIAL services group AMP is considering a rights issue to refinance tax-deductible preference shares, ahead of the demerger of its loss-making British business.

Local reports said the Australian group was seeking to raise A$1.2bn (£490m). Chief executive Andrew Mohl said it had not yet determined the best way to refinance the preference securities, known as resets.

The British business issued the resets, allowing AMP to deduct the coupon payment on the securities against tax. It will no longer be able to do this if the demerger goes ahead. AMP has previously said the securities will stay with the Australian business.

AMP said its options also included refinancing the resets into equity in the Australian company.