Prudential denies fresh bid for AIG unit
HONG KONG/LONDON (Reuters) - UK insurer Prudential is not considering a renewed attempt to buy AIG's Asian life unit, a spokesman for the company said yesterday, denying a media report that a fresh takeover proposal was in the works.
The Sunday Times, quoting unnamed sources, said the group was considering an attempt to resurrect its bid and Pru's chief executive Tidjane Thiam believed he could have a chance to table another offer before the end of this year.
Last week, Prudential abandoned its plan to buy AIG's Asian life unit for $35.5 billion, following shareholder protests that the deal was too expensive.
"We remain highly committed to Asia through our current very successful business. We will not be resurrecting the AIA deal and any speculation is misguided and inaccurate," Prudential's Hong Kong-based spokesman Chad Tendler told Reuters in an e-mail.
The bid, which cost £450 million ($660 million) in adviser fees and other charges, has cast doubt over Thiam's future at the company and prompted calls for a review of Pru's strategy.
But, ahead of Pru's annual general meeting on Monday, its chairman Harvey McGrath told the Financial Times that the "vast majority" of the group's big investors did not want Thiam to step down.
Some angry shareholders are calling for Thiam to quit, UK newspapers reported on Saturday. Richard Buxton, head of equities at the asset manager Schroders said "the management has to be held accountable for the fees that have been spent".
Meanwhile three of the top 20 investors are expected to vote against the group's remuneration report at the group's annual meeting on Monday, said a source familiar with the situation.
Aviva Investors, Schroders and Co-operative Investments have told the insurer they would not approve the report because of concerns over incentives offered to two of its new executives the source said.