… you’ve put Prudential into play!
That’s right, Pru has had a fifth, or £3bn, knocked off its market value since Thiam unveiled the ‘transformational’ acquisition of AIG’s Asian operations on Monday.
As a result, the life assurer now looks to vulnerable to bid, according to traders at least.
But who might bid? One theory doing the rounds – and we stress this is only a theory, and we have no special knowledge etc – is a break up bid led by Clive Cowdery’s Resolution.
Admittedly this piece of market tittle-tattle seems to be based on the fact that Resolution was quick on Monday to scotch speculation that it was in talks with Prudential to buy its UK life business. Indeed, Resolution put out its statement before the Pru even confirmed talks with AIG.
And it is not difficult to imagine how a break-up bid might work; Resolution takes Pru’s UK life business, HSBC the Asian operations and Aviva gets cut in for the US division.
However, this is all probably too neat, but for anyone interested in buying all or bits of the Pru it is really now or never. Not only has the share price collapsed, but if the AIG deal goes through Pru will be the HSBC of the insurance and effectively bid proof.
Related links:
Prudential – Day II – FT Alphaville
Fee bonanza – FT Alphaville
The Pru and the Great British Peseta – FT Alphaville
The HSBC of the insurance world (updated) – FT Alphaville
Pru agrees to buy AIA for $35.5bn – FT