Wealth management giant AMP has lashed out at the strategic alliance forged between investment boutique MacarthurCook and financial services group IOOF Holdings, claiming it is unacceptable.
AMP sought orders with the Takeovers Panel yesterday to demand MacarthurCook ask shareholders for approval of the alliance.
MacarthurCook formed a strategic investment management and distribution alliance with IOOF on June 13.
On that day, MacarthurCook gave IOOF 13 per cent voting power in the company by issuing 3.45 million shares at $1.15 a piece to IOOF.
The Australian Securities Exchange (ASX) claimed on June 24 that MacarthurCook had breached market rules by issuing those shares without shareholder approval.
MacarthurCook has vowed to take the matter to the ASX Appeal Tribunal.
AMP has become frustrated as its 18.4 per cent stake in MacarthurCook became diluted because of the IOOF alliance.
The wealth manager had also offered $31 million in cash to acquire MacarthurCook on June 10, which was rejected by the listed property investment manager.
"AMP submits that the placement constitutes frustrating action and unacceptable circumstances," the firm's statement to the Takeovers Panel said.
AMP demanded MacarthurCook get shareholder approval for the strategic alliance by August 14.
Until then, IOOF should have no voting power and must not get any dividends from MacarthurCook, AMP said.
If shareholders failed to approve the alliance, IOOF's stake in MacarthurCook should be removed, it said.
The Takeovers Panel has not taken any action and would not make a comment.
