* AMP denies media report CEO De Ferrari (NYSE:RACE) was quitting
* Statement on Friday says AMP discussing future leadership
* AMP shares give up most initial gains by close (Adds graphic, updates to closing share price)
By Byron Kaye and Rashmi Ashok
SYDNEY, March 26 (Reuters) - Australian wealth manager AMP Ltd AMP.AX again rejected a media report that its CEO was resigning but confirmed succession-planning discussions were on, raising questions about leadership stability at a firm trying to end years of turmoil.
After the Australian Financial Review reported on Thursday that Francesco De Ferrari was quitting two years into the role as chief executive, AMP promptly denied the report. A second statement on Friday added that the CEO and board were "constructively discussing the future strategy and leadership of the group".
Though the Friday update calmed worries of an immediate CEO exit, it put the spotlight on a company still trying to right itself after a 2018 financial sector government inquiry saw many of its top executives leave, and policyholders pull their funds.
AMP shares rose nearly 5% in early trade on Friday before retreating to close up 0.8%, just ahead of the broader market .AXJO .
De Ferrari was brought in to stabilise the company and he put all its business units up for sale but last month disclosed that a A$6.36 billion ($4.8 billion) buyout from U.S.-based Ares Management ARES.N had fallen through.
AMP said Ares instead planned to buy 60% of AMP's star private markets business, AMP Capital, leaving the future of the rest of the company uncertain. matter what, AMP going forward is going to be a different beast, and a much much smaller beast," said Simon Mawhinney, managing director of Allan Gray, AMP's second largest shareholder with 6.6% of its stock.
"It does sound like the discussions have already taken place as to who will be who in the zoo and what people want to do, and you would expect that. Whether (De Ferrari) or the board thinks he's the right person, once AMP Capital is separated, I don't know," he added.
The company has also been rocked by complaints about the promotion of a staffer to become head of AMP Capital after being the subject of allegations of inappropriate conduct. AMP Ltd's chairman quit last year over the matter. an email to AMP staff, which the AFR quoted and an AMP spokesman verified to Reuters, De Ferrari said he remained "very much in the role and very focused, with the support of all of you, on the significant amount of deliverables we have ahead".
AMP shares are down 40% since De Ferrari started as CEO. ($1 = 1.3154 Australian dollars)
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