The AMP Ltd (ASX: AMP) share price finished higher on Tuesday, up 1.82% to $1.12.
The share price move follows rumours that AMP has put in a final offer to buy the wealth management arm of Westpac Banking Corp (ASX: WBC).
According to reporting by The Australian, AMP may have pipped Colonial First State for the prize. Final bids were due on 22 August.
According to the article, "AMP could be in the box seat to buy Westpac's wealth management unit with sources suggesting that the Australian listed financial group put in a final offer for the company".
The article said:
Sources say that Colonial First State lobbed a bid that may have been as low as $600m, while others say that AMP put forward a proposal believed to be at a higher price.
In the first round, CFS was thought to have been the only group to have put forward a conforming bid.
Earlier, it was expected that the unit would sell for at least $700m, but prices were adjusted downwards amid a period of market volatility.
Why is Westpac selling its wealth management division?
In May, Westpac sold the wealth management division's superannuation operations to Mercer Australia.
According to the article, banks have been retreating from non-core business activities to focus on home loans and business banking.
That's certainly the case at Westpac, with specialist businesses CEO Jason Yetton recently describing the sale of the superannuation business as a "further step in the simplification of Westpac".
In August 2021, Westpac also sold its life insurance division to TAL for $900 million.
Morgan Stanley is advising Westpac on the sale of its wealth management division, which includes its Panorama platform.
AMP share price snapshot
The AMP share price is up 12% in the year to date.
This compares to an 8% dip in both the S&P/ASX 200 Index (ASX: XJO) and the S&P/ASX 200 Financials Index (ASX: XFJ).
