…but at what cost to the shareholders?
Pru’s Thiam…needs hearing aid.
Pru’s Thiam…needs hearing aid.You may not have read it here first, but you certainly read it early.
There’s
not much mea culpa around among the top dogs at Prudential this morning. But there are some unintentionally funny comments, including this corker from CEO Tijani Thiam:“We agreed with shareholders that a renegotiation of the terms was necessary given market movements but it has not proved possible to reach agreement.”
Hang on Tij old cock, you didn’t even listen – let alone agree – with shareholders until they revolted en masse. All-ears Chairman Harvey McGrath also amused with this:
“We listened carefully to shareholders over the price, and initiated a renegotiation of the terms with AIG”
Not really, Harv. You listened with an arm up your back and a gun to your head. So let’s tot up the cost of this caring, sharing, listening bid for the wrong company at the wrong price at the wrong time.
Prudential itself says terminating the agreement with AIG will cost it about £450m. A total of £152.6m ($225m) would be paid on break-up and advisory fees. Other minor little bits and bobs related to the planned transaction will add another £297.4m.
Half a billion quid spent on a folly – which, with foresight, insight, and functioning timpanic membranes, could’ve been completely avoided.
Both men should go. And if the shareholders don’t organise this, then they’ll have only themselves to blame.
The Slog 