Prudential denies rumours of new AIG bid
The saga regarding the collapsed Prudential offer for AIG's Asian operations seems to be endless with rumours in the marketplace that the company is lining up another bid for later this year. While the company has refuted allegations of a second offer for the Asian operations in the future there is no doubt that confusion is still following Prudential in abundance!
There are many investors who believe the company needs to draw a line under the failed bid for AIG's Asian operations and many believe there will be management changes in the short to medium term. The £450 million charge which the company will take regarding costs for the failed bid is a bitter pill for Prudential shareholders to swallow especially in the current economic climate. There is a feeling amongst analysts and investors that the way in which the proposed bid was handled and the massive costs incurred could actually put Prudential on the shopping list of an overseas cash-rich competitor.
There are some who argue that Prudential has become a victim of the volatility in the stock market while others blame the management who would not appear to have taken the opinion of majority shareholders into account when looking towards the AIG offer.
Share this..
Related stories
Will Kraft Foods prompt a surge in worldwide takeovers?
As the dust begins to settle on the Kraft Foods takeover of Cadbury there is speculation that we could see a new wave of takeovers and mergers across the world. It is known that many "dealmakers" are currently juggling debt for equity ratios in the quest to find the next big deal and the next big pay packet. When you consider that many well-known companies around the world have had their most diff...
Read MoreWhy are so many flotations being pulled?
Over the last few days we have seen a number of high-profile flotations postponed or cancelled due to market conditions. So what is going on in the UK marketplace? Only a few weeks ago there seem to be increasing demand for quality new issues in the UK but the last few days, with the Eurozone problem growing by the day, have seen investors step back from new issues resulting in a number of canc...
Read MoreDid the UK government pull the plug on Lehman Bros?
A very interesting book has been released today which covers the demise of the infamous Lehman Bros and the critical talks between the US and the UK government which eventually decided the fate of one of the world's oldest financial institutions. So what happened on that fateful day when Lehman Bros went into bankruptcy?
As the US economy continued to struggle in the midst of one of...
Appetite for risk returns to the investment markets
A report by Bank of America Merrill Lynch has today confirmed that investors are now regaining an appetite for risk with many investors willing to take more of a chance with their investments in the short to medium term. Despite the fact that the UK, US and other economies around the world are still feeling the after-effects of the credit crunch and the economic downturn it seems that some investo...
Read MoreCould the US rescue European stock markets?
As we await the release of US job data for the month of May many experts believe that the US economy could provide significant support to European stock markets. The recent release of US construction data is a prime example of how recovery in the US economy can and will influence the worldwide economy but an awful lot seems to be hinging upon the US at the moment. The initial stages of recovery...
Read More