No resignations over AIG bailout failure, Pru chairman claims

7 June 2010

Senior executives at Prudential will remain in their posts despite the collapse of the insurer’s planned acquisition of American International Group’s Asian business, the firm’s chairman has stated.

Harvey McGrath made the comments during an interview with the Financial Times.

Prudential’s planned takeover of AIA fell apart earlier in the week after the firm attempted to negotiate a price lower than the original figure of $35.5 billion.

Many investors and shareholders had criticised the decision to undertake the move, claiming that the acquisition was too expensive in the current market conditions.

However, Mr McGrath told the news provider: “The board is completely behind the management team. No one has offered to resign and no one has been asked to resign.

“There are a couple of shareholders calling for change, but they are outliers. The vast majority of our biggest investors are saying they don't want to see change at the top."

The failure of the business deal is expected to cost Prudential $450 billion

Mr McGrath and Tidjane Thiam, chief executive officer at the firm, are both expected to meet shareholders at the insurer’s annual general meeting due to be held on Monday (June 7th).

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