Pru facing rebellion over bid for AIA

INSURANCE giant Prudential will post first-quarter figures on Wednesday as it continues to be swamped by speculation over a shareholder rebellion against its mammoth bid for AIG's Asian arm.

The latest rumour is that Prudential's biggest shareholder, Capital Research & Management, which has a 12 per cent stake, is trying to encourage a break-up of Prudential and could vote against the planned 23.2 billion takeover of AIA.

It is thought that Capital, a US investor, approached Prudential's rival Aviva about joining forces in a break-up bid, although Aviva reportedly turned down the chance.

The developments come as an unwelcome distraction for Pru as it prepares for the imminent launch of a prospectus for its record-breaking 13bn fundraising bid to finance the takeover.

It is also a further signal of discontent among investors over the size of the proposed deal and the money they are being asked to stump up.

While attentions are likely to focus once more on Pru's battle to secure support for the deal, analysts expect its first-quarter figures to confirm the growth prospects in Asia.

It reported record sales in the region for the last three months of 2009, up 42 per cent quarter-on-quarter.

In the more competitive UK region, life and pension sales were 723 million, down 24 per cent on 2008, but operating profits for the UK were up to 657m, from 589m in 2008.