BNZ will be back in the wealth management game in a big way if its parent company National Australia Bank’s surprise deal to buy Axa Asia Pacific goes through.

Earlier this week AMP and Paris-based Axa SA, which owns 53% of Axa Asia Pacific, boosted their offer for Axa Asia Pacific from A5.34 to A$6.22 per share, putting the company’s value at A$12.85 billion.

But NAB has come from nowhere with a bigger bid, announcing yesterday it had agreed to a deal to buy Axa Asia Pacific’s Australia and New Zealand assets for A$13.29 billion.

Funds manager Alliance Bernstein has delivered strong returns for investors since setting up here in 2001 but its own financial performance has suffered during the financial crisis.

The company, half owned by Axa Asia Pacific, has been bleeding cash in New Zealand over the last 18 months its latest accounts show.

In the year to December 2008 the company reported after tax profit of $1.88 million, down from $2.97 million in fiscal 2007.

Total equity declined from $7.99 million to $6.6 million and total assets decreased from $11.54 million to $10.15 million.