Some Prudential investors set to oppose AIA deal-report

LONDON, May 27 (BestGrowthStock) – Shareholders holding up to 15
percent of British insurer Prudential Plc’s (PRU.L: ) shares plan
to write to the chairman saying they oppose the company’s $35.5
billion takeover of AIG’s Asian arm, the Times reported in its
Thursday edition.

The paper said it was understood that some of Prudential’s
biggest institutional owners are among those poised to write to
Prudential’s chairman Harvey McGrath within the next 48 hours.

It is understood that a number of investors will urge
McGrath to try to renegotiate the price, the paper said.

Shareholders have voiced concerns over the high cost of the
takeover of American International Assurance, which will be
financed through a record $21 billion rights issue.

Robin Geffen, the co-founder of Neptune Investment
Management, which owns about 50 million pounds in Pru shares,
is separately trying to marshal opposition to the AIA plan. He
said yesterday that institutional shareholders accounting for
more than 15 per cent had privately indicated to him that they
were preparing to vote “no”, the Times said.

Geffen said he was canvassing investors to vote against the
bid, according to the Times.

“The most important thing is to marshal the votes. That’s
what I’m focused on,” he told the paper.

Shareholders are due to vote on June 7. Prudential needs 75
percent of voting stock to be cast in favour for the deal to go

Influential voting adviser, RiskMetrics (RISK.N: ) told
investors this week to vote against the takeover saying
Prudential was paying a “full price” for AIA.[nTOE64P05Z]


(Reporting by Caroline Copley; Editing by Carol Bishopric)

Some Prudential investors set to oppose AIA deal-report