Prudential shareholders criticize bosses

8 June 2010

Prudential shareholders made their feelings known about the collapse of the AIA takeover at a heated meeting with the firm's executives yesterday (June 7th 2010).

The proposed $35.5 billion takeover was called off last week after Prudential failed to negotiate a cheaper price.

Shareholders had been uneasy about the original AIA deal, which would have required the approval of 75 per cent of them to go ahead.

Chief executive Tidjane Thiam and chairman Harvey McGrath faced criticism for pursuing the deal, which has cost the company around £450 million ($651 million) in wasted fees, reports Bloomberg.

Shareholder Paul Ferro said: "We want a couple of heads to roll.

"There's been a huge amount of mismanagement. We could have had a year's extra dividend for all that's been wasted."

But independent director James Ross said both Mr Thiam and Mr McGrath retain the confidence of the board.

By Tony Aynsley

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