Prudential chief's regret over aborted AIG bid
By Myles Neligan |
June 8, 2010, Tuesday
|
Print Edition
Print Edition
BRITISH insurer Prudential's top bosses sought to ease shareholder anger over its botched bid for United States group AIG's Asian unit, publishing bumper sales and apologizing for the misadventure's hefty cost.
But Prudential defended the US$35.5 billion offer for American International Assurance, which would have made it Asia's largest foreign-owned insurer.
"We remain convinced we were right to pursue this business opportunity. We feel it was a risk in proportion to the advantage we would have gained," Chairman Harvey McGrath told shareholders at its annual meeting in London yesterday.
Chief Executive Tidjane Thiam used his opening remarks at the meeting to apologize.
"I know that some of our, my actions put a considerable strain on relations with shareholders. I very much regret that," he said.
Prudential was facing many of its investors for the first time since the Asian takeover bid was pulled last week after a tortuous process that cost 450 million pounds (US$650 million).
"We believe that, however regrettable, it was right to pull out. Please believe how sorry we are that we incurred costs, only to see the deal fall at the final hurdle," McGrath said,
Earlier, the insurer published a 28 percent jump in sales during April and May, ahead of 26 percent growth reported in the first quarter - numbers it said demonstrated the business remained on track despite the Asian distraction.
The group said its strategy remained unchanged.
But Prudential defended the US$35.5 billion offer for American International Assurance, which would have made it Asia's largest foreign-owned insurer.
"We remain convinced we were right to pursue this business opportunity. We feel it was a risk in proportion to the advantage we would have gained," Chairman Harvey McGrath told shareholders at its annual meeting in London yesterday.
Chief Executive Tidjane Thiam used his opening remarks at the meeting to apologize.
"I know that some of our, my actions put a considerable strain on relations with shareholders. I very much regret that," he said.
Prudential was facing many of its investors for the first time since the Asian takeover bid was pulled last week after a tortuous process that cost 450 million pounds (US$650 million).
"We believe that, however regrettable, it was right to pull out. Please believe how sorry we are that we incurred costs, only to see the deal fall at the final hurdle," McGrath said,
Earlier, the insurer published a 28 percent jump in sales during April and May, ahead of 26 percent growth reported in the first quarter - numbers it said demonstrated the business remained on track despite the Asian distraction.
The group said its strategy remained unchanged.
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