** Shares of Australia's Insignia Financial IFL.AX fall 1.1% to A$3.57
** The investment manager on Friday received a $1.70 bln takeover bid from private equity firm Bain Capital
** Analysts at Morgan Stanley consider the local prudential regulator, APRA, to be crucial as Insignia has a strong hold on the broader superfund market
** Says offers place IFL on the same trading multiples as peer AMP AMP.AX, with the latter having a stronger balance sheet, better flows and proven cost-control story
** Brokerage has a current "under-weight" view on IFL, premised on its wealth outflows, with several platform integrations elevating outflow risks plus placing pressure on free cash flows
** Stock has risen 54.3% this year, as of last close
(Reporting by Rishav Chatterjee in Bengaluru; editing by Diane Craft)
((Rishav.Chatterjee@thomsonreuters.com;))
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