New rumours abound over the possible takeover of insurance giant Prudential this week, ensuring the firm’s stock price soared.
One of the names mentioned as a possible buyer was Asian life insurer, AIA, which was itself a target for Prudential just last year. Prudential finally withdrew its £22 billion bid for the Asian arm of the defunct US-based insurance provider AIG. Since then, AIA has floated on the Hong Kong stock exchange and is seen as a major rival to Prudential’s interests in Asia.
However, the rumours of AIA’s interest were being taken lightly by traders, some of whom claimed that AIA’s chief executive, former Prudential chief Mark Tucker, was set on developing organic growth. Another told The Independent that buying Prudential would be a “pretty big mouthful”. Having said that, Mr Tucker is certainly fixed on growth, recently stating to CTV News: “What has happened for different reasons is that AIA has fallen into the pack, and our job is now to take it back into a strong leadership position.”
Also mentioned was a possible price of 750 pence per share, resulting in Prudential shares gaining ground to highs of 585 pence, finishing 8.5 pence up at 579.5 pence.
