Tags: Some | Prudential | Investors | Oppose | AIG | Unit | Deal

Some Prudential Investors Oppose AIG Unit Deal

Thursday, 27 May 2010 07:07 AM

Shareholders holding up to 15 percent of British insurer Prudential PLC's shares plan to write to the chairman saying they oppose the company's $35.5 billion takeover of AIG's Asian arm, the Times reported in its Thursday edition.

The paper reported it was understood that some of Prudential's biggest institutional owners are among those poised to write to Prudential's chairman Harvey McGrath within the next 48 hours.

It is understood that a number of investors will urge McGrath to try to renegotiate the price, the paper reported.

Shareholders have voiced concerns over the high cost of the takeover of American International Assurance, which will be financed through a record $21 billion rights issue.

Robin Geffen, the co-founder of Neptune Investment Management, which owns about 50 million pounds in Pru shares, is separately trying to marshal opposition to the AIA plan. He said yesterday that institutional shareholders accounting for more than 15 per cent had privately indicated to him that they were preparing to vote "no," the Times said.

Geffen said he was canvassing investors to vote against the bid, according to the Times.

"The most important thing is to marshal the votes. That's what I'm focused on," he told the paper.

Shareholders are due to vote on June 7. Prudential needs 75 percent of voting stock to be cast in favor for the deal to go through.

Influential voting adviser, RiskMetrics told investors this week to vote against the takeover saying Prudential was paying a "full price" for AIA.

© 2017 Thomson/Reuters. All rights reserved.

   
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Shareholders holding up to 15 percent of British insurer Prudential PLC's shares plan to write to the chairman saying they oppose the company's $35.5 billion takeover of AIG's Asian arm, the Times reported in its Thursday edition. The paper reported it was understood that...
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2010-07-27
Thursday, 27 May 2010 07:07 AM
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