Prudential PLC (LON:PRU) says it will meet with the US hedge fund calling for it to separate its US and Asian business and decamp from the UK.
Third Point, which has US$14bn under management and is led by corporate activist Dan Loeb, wrote to the Pru yesterday claiming it can save £200mln if it closed the head office in London.
In the letter, Loeb said there was no strategic logic to the company's current structure with the separate US and Asian operation run from the London HQ.
Prudential, which is valued at £37bn, recently demerged its fund management arm M&G and shifting its two other divisions abroad would end the company’s 172-year presence in the UK.
In a formal reply, the Pru said it ‘proactively engages with shareholders regarding strategy and structure and ‘looks forward to a dialogue with Third Point' about the views outlined in the letter.
Third Point recently paid US$2bn for a near 5% stake in the insurer and is now its second-largest shareholder.