The firm confirmed it wants to buy AIA for $35.5bn in March, as part of plans to increase its Asian presence. However, the announcement drew much criticism from investors who are not happy with the price and last week some of the biggest investors, led by Capital Group, were said to be preparing to launch a break-up bid to block the deal.
Tidjane Thiam, Prudential’s chief executive, previously indicated he would retain the company’s UK business but, according to The Telegraph, City sources believe a sale of its UK and US assets could be imminent. Resolution’s Clive Cowdry has already made repeated overtures for the business and, while no discussions are said to have taken place, it is expected he will make a bid.
If the firm were to sell its UK business it would include Prudential International which offers offshore bonds to UK and overseas investors.
Prudential investors are this week anticipating the publication of the terms of a rights issue which aims to raise £14bn to help with the purchase of AIA.
Analysts believe the document will show there is no justification for a continued UK presence, given the Asian operations, which include bases in Hong Kong and Singapore, already generate around three times as much cash as the UK operation.
A Prudential spokesperson said: "We are focused on our value enhancing agreement to acquire AIA. Reports of what may or may not happen subsequently are speculative and we never comment on speculation as a matter of policy."
