The battle for control of AMP’s wholesale office fund could be about to heat up.
The post Why AMP (ASX:AMP) shares might be in the spotlight next week appeared first on The Motley Fool Australia. –
The coming week might be a big one for the AMP Ltd (ASX: AMP) share price. The company is reportedly struggling to keep a hold of its $7 billion office fund as investors band together to vote AMP Capital out of its management position.
As The Motley Fool Australia recently reported, an independent committee is expected to table its recommendations for the fund’s management next week.
If AMP Capital loses control of AWOF, it might find itself in a weak position ahead of its demerger from AMP.
As of Friday’s close, the AMP share price is $1.17, 2.18% higher than it ended Thursday’s session. That’s also 0.8% lower than it was this time last week.
Let’s take a closer look at the battle that might soon be heating up.
The AMP share price could soon be in focus
Market watchers might want to keep their eyes peeled for news on AMP Capital next week.
AWOF’s investors are reportedly demanding that control of the fund be shifted to an entity with stronger governance, more alignment with investors’ interests, and a quality management platform.
The Australian reports that it understands local superannuation funds are leading the push against AMP Capital’s management. They might have convinced around half of the fund’s investors to vote against AMP Capital.
AMP Capital needs to receive support from 75% of the fund’s register to keep its seat at the head of AWOF’s table.
However, The Australian also reports that some investors claim most of the voting parties are still undecided.
GPT reportedly plans to merge the fund with its own wholesale office fund if it wins AWOF’s reins. Mirvac’s expected to run the fund as a pooled vehicle if it gains control.
Right now, the AMP share price is 24% lower than it was at the start of 2021. However, it has gained 3% over the last 30 days.
The post Why AMP (ASX:AMP) shares might be in the spotlight next week appeared first on The Motley Fool Australia.
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.