Pru’s fundraising stumbles on capital strength concerns
Prudential’s £14 billion rights issue has hit a snag.
The prospectus for the fundraising, needed to back Pru’s acquisition of AIA, the Asian business of AIG, should have been circulated today.
However, according to reports, the Financial Services Authority has concerns over Prudential’s capital strength and has called a temporary halt to proceedings.
The controversial acquisition has not found favour with some of Pru’s shareholders and earlier this week it emerged that the group was under pressure from institutional investors to sell assets in the UK to help fund its Asian expansion.
According to The Daily Telegraph, Clive Cowdery’s acquisition vehicle, Resolution Ltd, has already arranged for Royal Bank of Scotland and Royal Bank of Canada to provide £5 billion in finance in anticipation of a sale.
Prudential is apparently confident that its rights issue prospectus will be available in the next few days.
Category: Financial Services Authority News, Financials, Insurance News, Prudential Insurance News
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