Axa Asia Pacific today rejected a A$11 billion (£6 billion) break-up bid from Axa, its French parent, and AMP, its Australian rival.

The offer, which would see AMP take control of the Australasian businesses and Axa buy the Asian Pacific assets, including China and India, was immediately rejected by the independent directors of Axa Asia Pacific's board, saying it undervalued the company.

The complicated deal involves AMP buying the whole company for a mixture of cash and shares at A$5.34 per share, a 31 per cent premium to its price at Friday's close on the Sydney stock market and a total value of around A$11 billion.

It will then sell on the Asian assets to Axa in return for receiving Axa's 54 per cent stake in the Australasian assets and A$1.8 billion in cash.

Axa is raising €2 billion (£1.78 billion) in a rights issue to finance the cash part of the deal.

Henri Castries, the French group's chairman, said that the deal would double its exposure to high growth Asian life and savings market with no integration risk and double its Asian earnings.

He added: "The proposed transaction offers to AXA APH’s minority shareholders a significant premium and the opportunity to become shareholders of a larger and stronger AMP Group which will permit them to share directly in the significant synergies that this transaction would create.”

Axa Asia Pacific shares jumped 33 per cent, as investors bet on a higher offer emerging from Axa.

Its French parent had tried to buy out the minorities in its Asia Pacific subsidiary five years ago but was also rebuffed.

Rick Allert, Axa Asia Pacific chairman, said: “The proposal has been received against the backdrop of recent weakness in global financial markets and before the growth of our Asian operations is fully reflected in our profitability.”

AMP is determined to grow its wealth management, having lost out in a bid for British insurer Aviva's assets to National Australia Bank earlier this year.

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