Resolution secures funding for Pru deal
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Resolution founder Clive Cowdery has secured finance from the Royal Bank of Scotland and the Royal Bank of Canada to fund a bid for Prudential’s UK assets, according to The Telegraph.
Last month Prudential chief executive Tidjane Thiam admitted to holding talks with Cowdery over the sale of the insurer’s UK arm, although analysts have suggested that Pru would be unlikely to want to sell its UK division due to the effect this would have on its credit rating.
Prudential will tomorrow publish the prospectus for its rights issue to raise £21bn to help fund the acquisition of AIA, the Asian arm of now defunct US insurer AIG.
Prudential’s biggest shareholder Capital Group, which owns a 12 per cent stake, is thought to be looking to scupper the £23.5bn acquisition by seeking a break-up of the insurer.
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Readers' comments (2)
Sean | 4 May 2010 8:44 am
How can RBS (which received a Government bailout) and I know is playing hardball with a number of Property Partnerships amongst others as it wants to reduce its exposure to commercial lending suddenly come up with the funds to lend money to Resolution?
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John Whipple | 4 May 2010 11:00 am
RBS finds billions of our money to send to Asia and stuff UK Pru with profit policy holders but yet can't find any cash to fund small business that would invest and grow the UK economy.
There is something very wrong here.
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