Under the terms of the proposed deal, wealth management company AMP would buy all of the shares in AXA Asia Pacific and then sell the Asian operations to AXA for $7.1 billion while retaining its units in Australia and New Zealand.
The Australian company is already 53.9 per cent owned by French insurer AXA but rejected the offer on the basis that it did not reflect the financial prospects of its Asian operations.
Rick Allert, AXA Asia Pacific chairman, said: "It is the unanimous view of the Independent Board Committee that the proposal significantly undervalues AXA APH.
He went on to add that AMP and AXA were attempting to take advantage of the current state of the global economy in trying to make a deal now.
"The proposal has been received against the backdrop of recent weakness in global financial markets," he stated.
Earlier this year, the company announced pre-tax profits of $248 million for the first six months of 2009.
By Tony Aynsley