Prudential Share Discussion Threads

[royalt] 01/6/2010 20:59

Silly frog...Trying to screw up a great British company. He hasnt got a clue. http://www.guardian.co.uk/business/2010/jun/01/no-room-at-top-after-prudential-aig-debacle Three factors should make it impossible for Thiam to continue as the Pru's chief executive if, as expected, the deal is dead. The first is the cost of the exercise. The Pru is on the hook for £153m as a break fee to be paid to AIG. Add the fees for the advisers, lawyers, underwriters and printers and the total bill could be £500m, even when the completion-related elements are knocked off. That's half a billion quid of shareholder's money – an entire year's dividend payments – down the drain. Are shareholders meant to shrug their shoulders and ignore the wastefulness?

[topvest] 01/6/2010 20:25

Well he probably will get a massive pay-off, but his CV has been somewhat tarnished. That's where empire building at any cost gets you!

[miata] 01/6/2010 20:19

Just hope they don't give him a large golden goodbye.

[topvest] 01/6/2010 19:41

Shareholder value restored...lol...shows what a ridiculous deal this was, when the share price rockets when it's off.

[witheld] 01/6/2010 13:02

Reckon only for a short while though. Overall sector is down from when the deal was announced and don't forget the exit fees incurred should they annouce the deal being off (almost a cert). ???? reckon the breakup rumours will surface again and nothing will happen... again. :)

[robrah] 01/6/2010 12:41

so where is the share price likey to go then ?

[miata] 01/6/2010 12:23

Sterling rallied against the dollar on Tuesday, shedding earlier losses after speculation that Prudential would soon announce that it would abandon its takeover bid for AIG's Asian unit.

[grahamite2] 01/6/2010 11:30

It is an absolute. total disgrace when a board maniacally pursue a goal the humblest shareholder can see to be demented. Has nothing been learned from the ABN Amro affair?

[miata] 01/6/2010 08:08

Yes, AIG "will not consider revisions to those terms". Should let the PRU shareprice bounce.

[johnthornleigh3] 01/6/2010 06:35

Looks like the deal is a dodo. Goodbye Thiam and McGrath

[hadrock] 30/5/2010 22:06

Pru shocked by poll on Asian deal The Prudential must secure a cut of more than 10pc in the price of its £24.5bn ($35.5bn) takeover of insurer AIG's Asian business if it is to win the support of major investors. Reports suggested that private polling done for the Pru revealed only around half of individual investors, many with small stakes, will support the move. Large institutional investors are understood to be even less likely to vote in favour of it, with just 30pc believing it is in the company's best interests. Not so prudent: Reports suggested that private polling done for the Pru revealed only around half of individual investors will support the move More... Pru chief in £3.4bn price cut This is Money: Market latest Only 56pc of Prudential's 10,000 largest individual shareholders are also thought to back the move. Tidjane Thiam, the Pru's chief executive, was in the US over the weekend to meet with shareholders. This included a visit to San Francisco on Friday for a showdown with capital Group, the Pru's biggest shareholder with a 13pc stake. it is believed capital told the beleaguered Pru chief it would back the deal if the price dropped to be tween £21.4bn and £22.1bn. A number of other big investors have also indicated they would support the takeover if the terms could be renegotiated. The US government owns 80pc of AiG and is thought to be determined to get the failed insurance giant off its books, but could baulk at the discount now being demanded by Thiam. A source said: 'if it gets to $30bn (£20.7bn) everybody will be pleased. if it gets to $31bn or $32bn then it's negotiable.' The UK insurer must secure the support of 75pc of investors at a special meeting on June 7 if the deal is to go ahead. But the deal has been dogged by shareholder disquiet over the hefty price tag, and a £14bn cash call that is part-financing the purchase. investor heavyweights F&C, BlackRock, capital and Legal & General have all voiced their misgivings about the current deal, forcing Thiam back to the negotiating table. The takeover would give the Pru around 30m customers in Asia and see the Asian operation become by far the group's biggest division - contributing around 60pc of new business profit. The US Treasury, which has a controlling interest in AiG, said it has not considered any other deal than the existing contract on the table. AiG believes that it has other options for its Asian arm, called AiA, if the Pru deal falls through. This could include floating the business, although this may not be so attractive in current volatile equity markets. A US Treasury spokesman said: 'We believe AiA is a valuable business for which there is significant interest.'

[topvest] 30/5/2010 15:52

One has to say that the PRU board have lost ALL credibility!

[royalt] 30/5/2010 15:37

Oh dear... Pru wins backing for 10% off AIA http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article7140141.ece

[jusmasel99] 30/5/2010 14:31

I am sure Pru investors will be delighted to have a CEO who was willing to pay $5billion more for a company than that company were willing to sell for. Even AIG state that an alternative strategy to get rid of AIA by way of an IPO was unlikely to raise more than $20billion.

[topvest] 29/5/2010 12:51

Nice to see common sense prevailing. Why trash a perfectly good company with such a dilutive high risk strategy?

[miata] 28/5/2010 12:18

F&C Asset Management, one of its biggest shareholders, said that it would vote against.

[miata] 28/5/2010 11:59

PRU attempting to re-negotiate price. "Mr Thiam certainly does not want to be remembered as the insurance industry's answer to Fred Goodwin. "

[miata] 28/5/2010 09:55

http://www.guardian.co.uk/business/2010/may/28/pru-shareholder-revolt-grows

[mike24] 28/5/2010 06:39

A nice rise today to cash in on? wonder what the customers have to say, the life blood of the company the with profit policy holders think of us,, try "The Boot on Throat approach" to re negotiate, seems in flavour lately

[miata] 27/5/2010 09:17

It would be possible for the deal to be called off and then anything would be possible. The chance of getting the necessary 75% shareholder approval seem slim to me.

[l.parker] 27/5/2010 08:56

Can anyone make sense with what is happening? According to the Times,many large holders of pru shares are not in agreement with the management, & want the Co to renew the terms of the offer,surely this would,nt possible, would it?