Prudential Share Discussion Threads

[taffee] 01/3/2010 10:53

400p to be fully underwritten...but are pru doing an rbs?

[smurfy2001] 01/3/2010 10:51

TOPINFO - l sold out of these a while back, you can see my declaration sometime back posted on this forum, made a packet.




taffee - 5 Dec'09 - 08:55 - 777 of 817

with stocks and markets at 2006 levels it makes sense to bank at least half your money....end of!

smurfy2001 - 5 Dec'09 - 16:04 - 778 of 817 edit

taffee, PRU is not far off 2007 market highs. That's why l sold.

taffee - 5 Dec'09 - 16:07 - 779 of 817

goodn plan....now its hard cash...you won...well done

[safman] 01/3/2010 10:50

Not me, but interested in what happens here..

saffy..

[smurfy2001] 01/3/2010 10:49

Alanrex ,

I think so but I'm waiting on the sidelines to see how today goes before opening a short.

I'm surprised the thread is so quiet, thought it would be busy.

[topinfo] 01/3/2010 10:48

Hands up who bought those shares in auction at 250p more than they are now?

[grahamite2] 01/3/2010 10:47

Agreed smurfy. I closed my short at 533 because frankly this morning has been very stressful indeed, but I think there might be one hell of a lot more downside.

Incidentally, when orders first reappeared they showed a price of 760 - a contributing factor in spooking me!

[alanrex] 01/3/2010 10:47

ive just gone short.. hopefully this one pays off.. this is a large rights issue, bigger than lloyds and whilst over the long term the deal will no doubt be good, its a huge amount that needs to be raised. Its not going to be easy and will require a discount in my opinion to get existing and new holders to sign up...thats a lot of money being talked about to be raised..

all imo dyor

[alanrex] 01/3/2010 10:42

is this an easy short,,? need to raise a huge amount??

[smurfy2001] 01/3/2010 10:38

Could see lots of short covering then further hits?

[smurfy2001] 01/3/2010 10:27

In auction at the minute.

[grahamite2] 01/3/2010 10:26

Presumably trading will not begin again until after the analysts meeting at noon today.

$20bn fully underwritten - the underwriters won't accept a price that might leave them with stock on their hands.

Trading again.

[l.parker] 01/3/2010 09:11

Doom & Gloom merchants running wild,I have five pensions, two are paid
every month, & I've just looked at my bank a/c & they have been paid today
& I have every confidence that they will continue till I am no longer around
to enjoy them. I think Prudential are more capable of running their Co. than
this shower ru(i)nning this Co. UK.

[smurfy2001] 01/3/2010 07:59

Is it any wonder, every man was ready to go short today.

[profitaker] 01/3/2010 07:59

graham

Source ?

[grahamite2] 01/3/2010 07:58

Bloody hell, PRU suspended pending an announcement.

[taffee] 01/3/2010 07:39

another shareholder shafting...glad I'm not in this one...why can't these companies go for organic growth?

[grahamite2] 01/3/2010 07:38

Denial by Resolution confirmed in 7 a.m. RNS.

[grahamite2] 01/3/2010 07:26

Have just heard on R4 Resolution deny they will be buying any of PRU, so Telegraph seems to be wrong on this (needs to be double checked, I might have misheard). All told it does seem confirmed that there will be a truly massive rights issue.

[tarvold] 01/3/2010 06:37

HONG KONG (Dow Jones)

Prudential PLC (PRU.LN) will take a more than 10% stake in American International Group Inc. (AIG) as part of the U.K. company's plan to buy the U.S.-government controlled insurer's Asia life insurance unit for around US$35 billion, a person familiar with the situation said Monday.

Prudential's acquisition of American International Assurance Ltd. will have a US$25 billion cash component, funded by a US$20 billion rights issue and a US$5 billion debt issue, the person said. Both issues will be fully underwritten by Prudential's three advisers on the sale--J.P.Morgan Chase & Co., Credit Suisse Group and HSBC Holdings PLC, the person added. Details of the deal and the fundraising will be announced as soon as Monday, the person said.

The remaining US$10 billion cost of AIG will be in the form of a vendor placing, where AIG will get shares and other equity instruments in Prudential, and Prudential will take more than 10% in the U.S. insurer, the person said.

Prudential's acquisition of AIA will put to an end the US$10 billion-US$20 billion Hong Kong initial public offering process of the Asian life insurer that bankers, led by Morgan Stanley and Deutsche Bank AG, have been working on since the middle of last year, the person said.

"The sale would allow AIG to get more cash upfront and more quickly," the person said. "If AIA goes through an IPO, it would take AIG at least two to three years to sell down its stake to zero."

Prudential's purchase of AIA will create an insurance giant in the fast-growing Asia-Pacific region. The merged entity will the largest player in at least seven markets, including Hong Kong, Singapore, Malaysia, Indonesia and the Phillippines, the person said. He said in a market like Thailand, where AIA is dominant and Prudential is relatively small, the growth benefits would be instant.

Also included in the sale are AIG's China and India entities, both of which are in AIA. AIG is the only foreign insurer allowed to have a fully owned entity in China. The India sale, however, could be problematic, as Prudential already has a joint venture in the country with ICICI Bank, the person said, and the Indian government only allows foreign players to have an interest in one insurer in the country.

In India, AIG has 26% in a joint venture with the Tata Group.

Goldman Sachs Group Inc., The Blackstone Group LP and Citigroup Inc. are advising AIG, people familiar with the situation said earlier. Morgan Stanley is advising the New York Federal Reserve.

[abcposter] 01/3/2010 06:26

This will be a massacre for the PRU this morning, and also most likely for Aviva and the whole Insurance sector.

From The Times today

Prudential is poised to make the biggest cash-call in British corporate history to help to finance an audacious acquisition of American International Group's Asian assets.

Britain's second-largest insurer will tell the stock market this morning that it is in advanced talks to buy AIA for about $30 billion (£19.6 billion). The Pru plans to ask investors for about £15 billion.

Talks between AIG and Prudential were continuing into the early hours this morning, amid speculation that a formal agreement could be signed today. It is understood that AIG, which is controlled by the US Government after a $182 billion bailout, might take a stake in the Pru as part-payment. This would involve issuing new shares.

Prudential's shares are expected to tumble in the wake of today's statement, as investors digest a huge capital-raising that, unless they take it up, would heavily dilute their stakes.

[leedskier] 01/3/2010 06:08

Yes, with an initial rights issue of $26b, raising more cash than the current cap value, and more than HSBC raised, making it the biggest ever in London. That said once the dust has settled, it could be a very good long term investment.

[smurfy2001] 28/2/2010 11:28

Good article.


Prudential plans new world order