Axa Financial makes offer of $1.5 billion for MONY Group.

Axa Financial Inc., the financial services affiliate of France's Axa Group said it would acquire New York-based MONY Group Inc. for $1.5 billion in cash, in a move that Axa said would boost its distribution reach by nearly 25% and open new geographic markets for Axa products and services.

The transaction is expected to close in the first quarter of 2004, subject to regulatory and MONY shareholders' approval. Under terms of the deal, MONY shareholders will get $31 for each share of MONY common stock--a premium of 6.2%, based on MONY's closing price on Sept. 16, 2003, Axa said.

Christopher Condron, Axa Financial's president and chief executive officer, said MONY would boost Axa's retail insurance and annuity distribution reach by almost 25%, or 1,300 additional agents, providing "significant additional outlets" for Axa's products and "a significant new presence" in a number of high-growth geographic markets where Axa is "currently underrepresented." MONY, which has about $55 billion in assets under management, would also bring its Advest brokerage business to the mix, serving high-income and high-net-worth clients that would round out Axa's asset management capabilities, he said.

"From a distribution standpoint, it's a good fit," said Condron in a conference call. "This is all about growth, it's all about acquiring additional distribution. MONY is significantly ahead of Axa in terms of wholesale markets. In turn, Axa is ahead of MONY in terms of annuities. The merger will also give Axa Financial access to new markets."

MONY's brand would probably be converted to Axa's brand name in most aspects of the business, said Condron.