As shareholder pressure on Harvey McGrath increases,
there is speculation about murkier influences in play

The Prudential is spinning like a top at the moment in an effort to make the AIA deal look vaguely sensible. But The Slog understands that the tide of shareholder opinion is turning steadily into a high tide of opposition to the purchase of AIG’s Asian arm.

The Pru yesterday lifted its target for cost synergies from the deal during 2013 fiscal by $30 million. It also said joining forces with AIA would produce $800 million in ‘pretax revenue synergies’ in that year – $100 million more than the previous estimate. Missing so far however(as with most of the ‘information’ about Harvey McGrath’s Big Idea) is much explanation of why exactly these happy events would happen. There are shades of Gordon Brown’s claims at the Despatch Box about some of the numbers whirling around in the hot air emanating from Prudential’s PR machine at the moment.

Odd events update: following The Slog’s gossip piece from Mr Plod yesterday about ‘let’s help exports’ pressure being put on the SFO to drop all UK investigations into AIG’s activities, reports of AIG testimony to the US Congress are coming in. They involve much Federal Reserve optimism about, and willingness to believe, the protestations of CEO Robert Benmosche that “healthy profits in our core property-and-casualty business” represent one of the reasons why the US taxpayer will have its AIG bailout monies repaid in full.

Particular emphasis was placed by Mr Benmosche on the need to “complete the sale of our overseas life units” in order to fully ensure the US Treasury gets real value for money on the taxpayer funds ‘invested’ in AIG after it went belly-up in 2008. The overseas life units referred to consist largely of AIA….the very same AIA, funnily enough, which is the object of Harvey McGrath’s acquisitive instincts.

One gets the feeling that all kinds of pressure are being applied re this one. I think it may have something to do with our old favourite The Special Relationship.

Meanwhile, we should all be reassured that squeaky-clean AIG has learned its lesson once and for all. Robert Benmosche told the Congressional hearings that “We’re developing a culture that’s anti-taking-extraordinary-risks”.

So that’s alright then. Shame the same can’t be said of Mr McGrath