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Daily Insurance Industry News
Sunday 18th of November 2018
May 6, 2010

Comment on the Pru’s faltering AIA deal

by Richard Kilner

Story link: Comment on the Pru’s faltering AIA deal

Comment on the Pru’s faltering AIA deal

James Chappel, Financial Strategist at Olivetree Securities, has commented on Prudential’s announcement to postpone the publication of its prospectus relating to the AIA acquisition.

According to Chappel the decision indicates that Prudential is aware it has a job to do in persuading its shareholders to back the deal.

He went on to say that two issues have been raised: firstly, the possibility that the £2.6bn capital surplus might be reduced, and secondly, that shareholders may query the regulators as to whether any new group would be sufficiently capitalised.

Chappel added that the news made an already difficult deal to get agreement on even more challenging for Prudential.

He finished by saying that a statement regarding the rights issue should be expected in the next week.

Yesterday it was reported that the FSA drew a temporary halt to proceedings due to concerns over Prudential’s capital strength.

 

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