Pru confirmed this morning that it had withdrawn from the deal to takeover AIA, the Asian life insurance arm of AIG. Neptune owns around £50m worth of Prudential shares and Geffen had launched an action group for shareholders to fight against the proposed £24.5bn takeover.
He urged them to give a vote of no-confidence in the insurer’s chief executive Tidjane Thiam (pictured) claiming he was putting Pru’s future at risk by embarking on the deal. Thiam’s future hangs in the balance following the AIA failure.
Geffen says Pru’s collapsed bid was “a triumph of common sense” and he backs McLintock as a successor to Thiam.
He says: “ We are delighted to hear that Michael McLintock, who has done such a great job over many years at M&G, is likely to be the next chief executive. He is a very able and good manager who always listens carefully to those around him. This would leave the Pru in a much stronger position going forward.”
Thiam says: “We entered into this potential transaction from a position of strength in Asia and we view the region as offering excellent growth opportunities for Prudential. We agreed with shareholders that a renegotiation of the terms was necessary given market movements but it has not proved possible to reach agreement. Our existing business in Asia has delivered another record performance in the first quarter of this year and we will continue to focus on generating sustainable shareholder value across our portfolio”.