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Prudential rejects Norwich Union's £17bn bid |
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Monday, 20 March 2006 |
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Prudential has received a £17bn from Norwich Union’s parent Aviva but has rejected the offer. Prudential has concluded Aviva’s bid of 708p a share is not in the best interests of its shareholders. If you want the rest of the story,
Aviva chief executive Richard Harvey is now seeking support from leading shareholders for an increased bid with speculation others may now bid. Press reports speculate that Axa, AIG and Zurich are also interested.
Aviva made a written proposal on March 16 to the Pru board, suggesting an all-share merger of the two groups and a new balanced board and management team drawn from both organisations with Harvey to become the CEO. Prudential recently announced its full year results, reporting a total EEV operating profit from continuing operations of £1,712 up by 33 per cent.
Harvey says: “This is a real opportunity to create a leading player in the global savings, investments and insurance market. The group would have significant presence and growth opportunities in Europe, Asia and the US.”
Informed choice managing director Nick Bamford says: “If a merger would shed some operational costs then this could be beneficial to shareholders. For clients and IFAs, we are looking at a possible merger of the Pru, which has not always been the best in terms of service, and Norwich Union, which is possibly one of the worst. But ultimately, I have nothing against consolidation and believe it could be a good thing.”
Thanks to Money Marketing |
