Prudential Investor Seeks No Confidence Vote On CEO
May 07 2010 - 8:02AM
Dow Jones News
A fund manager with a stake in Prudential PLC (PRU.LN) worth
around GBP50 million is trying to gather support for a vote of
no-confidence in chief executive officer Tidjane Thiam, as concern
mounts about the U.K. insurer's bid to acquire American
International Group Inc.'s (AIG) Asian unit and an associated
rights issue.
Neptune Investment Management, a U.K.-based fund management firm
with around GBP5 billion in assets under management, is seeking
backing from other shareholders in Prudential, according to a
report in the U.K.'s Daily Mail newspaper, which was confirmed by
representatives for the fund manager.
"I am trying to drum up support from institutions and all those
discontented small shareholders who feel they haven't been
consulted by management," Robin Geffen, managing director of
Neptune told the Daily Mail, in remarks verified by
representatives. Geffen himself couldn't immediately be contacted.
A Prudential spokesman declined to comment.
Prudential Wednesday delayed the start of a roughly $20 billion
rights issue--expected to be used in part to fund a $35.5 billion
acquisition of AIA Group Ltd.--after the Financial Services
Authority, a U.K. regulator, indicated that it had concerns over
the capital position of an enlarged group.
The rights issue was due to be released Wednesday but Prudential
said it would review the timetable and hasn't yet provided specific
detail. Discussions are continuing with the FSA.
The AIA acquisition, announced in March, has been dogged by
concern that shareholders wouldn't back it. In the two days after
the deal was announced Prudential's share price fell by almost 20%
due to these concerns, although it recovered since then.
Unconfirmed U.K. newspaper reports said Capital Group, which owns
more than 10% of the equity in Prudential, is opposed to the AIA
acquisition and sees better value in a break-up.
Top ten shareholders in Prudential, contacted by Dow Jones
Newswires in recent days, have all declined to comment on their
positions regarding the deal.
-By Jessica Hodgson; Dow Jones Newswires; +44207 8429373;
jessica.hodgson@dowjones.com.
(Vladimir Guevarra contributed to this item.)
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