Pru's biggest shareholder plots to scupper Asian takeover
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Prudential’s biggest shareholder Capital Group is believed to be attempting to scupper the insurer’s £23.5bn Asian acquisition by orchestrating a potential break-up of the insurer.
According to the Times, Capital Group, which owns 12 per cent of Prudential, is believed to have approached three British-based insurers including Resolution and Aviva, to sound out their interest in a possible consortium bid.
The newspaper says Capital has held informal talks with Resolution and Aviva as well as another unknown party in recent days, although none of these are thought to have expressed immediate interest in the deal.
If the break-up plan gathers momentum it could threaten to derail the insurer’s planned acquisition of AIG’s Asian arm, AIA. At least one other top ten investor is supporting the idea, the Times says.
The fresh dissent from shareholders comes less than two weeks before Prudential is due to publish terms and a price for its £14bn rights issue.
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Readers' comments (1)
John tittle | 4 May 2010 11:34 am
tittle tattle!
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