logo-loader
viewPrudential PLC

Prudential prepared to discuss break-up proposal from US hedge fund

Third Point has US$14bn under management and is led by corporate activist Dan Loeb

Prudential PLC -
Hedge fund wants it to leave the UK

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.

Quick facts: Prudential PLC

Price: 1047 GBX

LSE:PRU
Market: LSE
Market Cap: £27.31 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Amundi Physical Gold ETC: Europe's cheapest ETC now trading on the London...

Amundi Physical Gold ETC's Ashley Fagan who's head of ETF, Indexing & Smart Beta Development for UK and Ireland introduces the product to Proactive London's Andrew Scott. She says they've seen a great deal of demand from European as well as UK investors and that's what lead them to list...

1 day, 15 hours ago

2 min read