Dec 17 (Reuters) - Australia's Perpetual said

on Tuesday an independent expert has opined the asset manager's

plan to sell the wealth management and corporate trust business

to KKR would not serve the best interest of investors

after a tax bill blowout.

The company's A$2.2 billion ($1.40 billion) deal with the

buyout giant is at risk of falling after earlier in the month

receiving a much higher-than-expected tax bill, along with

higher liabilities and lower shareholder returns.

This also meant the estimated cash proceeds from the deal

would reduce to A$5.74 to A$6.42 apiece, from the previously

expected range of A$8.38 to A$9.82 apiece.

KKR did not immediately respond to Reuters request for

comment.

The sale of the businesses and the over-a-century-old

Perpetual brand would have transformed the firm as a standalone

fund management business while it undergoes a strategic

turnaround.

"These updates make the acquisition terms less favorable to

shareholders than previously anticipated. In light of these

developments, we think there is a low likelihood of the

transaction proceeding in its current form," Morningstar analyst

Shaun Ler said after the initial news on the tax issue.

The company and KKR are continuing constructive engagement

regarding the deal, Perpetual added.

($1 = 1.5711 Australian dollars)