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Daily Insurance Industry News
Thursday 15th of November 2018
April 28, 2010

Comment on Prudential’s acquisition of AIA

by Richard Kilner

Story link: Comment on Prudential’s acquisition of AIA

Comment on Prudential’s acquisition of AIA

James Chappell, financials strategist at Olivertree Securities, has commented on the proposed acquisition of AIA Group Ltd by Prudential.

Chappell has said that unhappiness amongst shareholders regarding the AIA acquisition had been known about for some time.

He went on to say that there was no easy transaction to effect a break-up of the Prudential, adding that the most popular route was the possible Resolution/Aviva deal.

Some shareholders have complained that the dilution levels of the AIA deal suggest that Prudential shares should fairly be priced 20% lower than the present price, Chappell stated.

Chappell warned that, as three-quarters of the shareholders are need to back the AIA deal, it was possible dissenters could block it, and added that there is a very reasonable chance of this occurring if shareholders set their mind to it.

Yesterday, it was reported that the Times understood the Prudential’s leading shareholder, Capital Group, was working with three UK insurers to form a takeover bid of Prudential.

The newspaper named Resolution Ltd and Aviva as two of the three consortium partners, but the fourth was not named.

 

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