AMP (ASX:AMP) share price hits new 52-week low

The AMP Ltd (ASX: AMP) share price is one to watch after slumping to a new 52-week low of just $1.24 per share on Tuesday.

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The AMP Limited (ASX: AMP) share price has had a tough start to the year. Shares in the Aussie financial services group have slumped 20.5% amid hitting a new 52-week low at Tuesday’s close.

Why is the AMP share price falling?

AMP has been in the news a lot as of late. Last year, major US private equity group, Ares Management confirmed its interest in acquiring 100% of AMP shares. That came in the form of an indicative, non-binding, conditional proposal in November. 

Ultimately, however, that $6 billion takeover deal fell through when Ares withdrew in February. AMP has since been working on a $1.35 billion sale of 60% of its AMP Capital unlisted markets business. The AMP Capital business is one of the most profitable arms under the AMP brand.

AMP will retain a 40% stake in the private markets business under the proposed joint venture with Ares. The deal also follows the sale of AMP Life for $3 billion to Resolution Life in July 2020 to leave a slimmed-down financial services group.

The AMP share price is under pressure as negotiations continue. Many investors have sold down, pushing the company’s share price to $1.24 per share at yesterday’s close. Well below Ares’ takeover offer of $1.85 per share.

There have also been leadership changes at the Aussie company. AMP CEO Francesco de Ferrari announced his retirement in late March 2021. He is set to be replaced by former Australia and New Zealand Banking Group Ltd (ASX: ANZ) deputy CEO, Alexis George.

The AMP share price has continued to slide to its current level amid the changes. It comes after Mr. De Ferrari was installed to right the ship after a scandal-plagued period highlighted by the 2018 Financial Services Royal Commission.

Foolish takeaway

The AMP share price remains under pressure in 2021 amid many operational and leadership changes at the group. Shares in the Aussie trading group fell lower on Tuesday to hit a new 52-week low of $1.24 per share at the market close.

Shares in the Aussie financial services group are underperforming the S&P/ASX 200 Index (ASX: XJO) by 24.9% so far this calendar year.

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