AIA chief says Prudential merger "unworkable"
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AIA chief executive Mark Wilson is set to quit if Prudential’s £24.5bn acquisition of the business goes ahead, according to the Financial Times.
The news comes as Prudential completes its planned listings on the Stock Exchange of Hong Kong and the Singapore Exchange Securities Trading Limited.
The FT says Wilson plans to step down once the deal closed because he believes the proposed merging of the two businesses is “unworkable”.
The paper quotes a source as saying: “Mark remains loyal to AIA but does not plan to stay with the merged group because he feels it is a disaster waiting to happen.”
The Asian stockmarket listings were delayed after the FSA stalled the insurer’s proposed £14bn rights issue due to concerns over capital earlier in the month.
The listings are by way of introduction with no new shares being issued or sold to the public or investors.
Chairman Harvey McGrath says: “It is an honour for Prudential to be listed in Hong Kong and Singapore, two world class markets. Today is an important milestone for the Group and further underlines our commitment to Asia.”
Responding to reporters after the announcement McGrath added: “The vast majority of shareholders are comfortable with the AIA transaction.”
Group chief executive Tidjane Thiam says: “Our listings in Hong Kong and Singapore will provide us with a strong platform from which to continue to take advantage of the significant opportunities across the region.”
It was revealed yesterday that the US Treasury has resurrected plans to float AIA due to concerns that Prudential’s acquisition of the business may fall apart.
US Treasury Secretary Tim Geithner is believed to still support the proposed Prudential takeover, which now depends on a key vote by shareholders in two weeks time. But he has requested back-up plans to be drawn up.
The American government took control of AIA after bailing out its parent, AIG, in the peak of the financial crisis.
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