French insurer Axa SA and Australian wealth manager AMP Ltd are expected to raise their joint takeover bid for Axa Asia Pacific Holdings, after their first offer was rejected last Friday, Bloomberg reports.

Axa had planned to sell its 54 per cent interest in Axa Asia Pacific to AMP for $10 million. According to the news service, Rob Patterson, one of Axa Asia Pacific's investment managers said that the offer "is not anywhere near acceptable," particularly given that the Asia business has significant growth potential.

Shares in the Asia firm rose to A$6.34 each on Monday on speculation that the duo will make a second offer. Citigroup analyst Nigel Pittaway reportedly said in a note that the new offer could go as high as A$6 per share, the publication added.

The current offer is at 0.6896 in shares plus A$1.3786 in cash - a price which an AMP spokeswoman said is "fair and compelling."

Axa SA and AMP will need the approval of the target firm's independent directors and minority stakeholders to push through with the purchase.

Axa Asia Pacific handles Axa Group's wealth management and life insurance operations in the region.