Resolution chief reveals shareholders share mergers and acquisitions ambitions
Negotiations between Resolution and Prudential look set to re-commence.
Negotiations between Resolution and Prudential look set to
re-commence after the former's shareholders gave their support to a
Resolution has hinted that it is set to go follow through on its
plans to open negotiations with Prudential over a possible
acquisition of its UK assets.
According to the chief executive of the buyout firm, John Tiner,
the UK financial services sector is set to be dominated by a number
of mergers and acquisitions over the coming months.
Notably, this could include Resolution's acquisition of the
insurance giant's British unit, with Tiner revealing that he has
been given shareholder approval to pursue these plans.
Indeed, speaking to reporters he stated his confidence that
shareholders would be willing to put up as much as £3 billion for
"They (shareholders) expect to produce significant further
funding to finance an acquisition," he said.
Despite this, it is believed that Prudential will not commit to
making a decision on the future of its UK assets until it can
finalise its own acquisition of AIG's Asian arm AIA in a deal
likely to be worth £23.6 billion, according to Reuters.
At the same time, however, the Financial Services Authority
(FSA) just this week forced Prudential to halt the cash call it
needed to fund its own deal.