Belfast Telegraph

Prudential and Fidelity hold talks

By Nicky Burridge

Insurer Prudential has said a meeting with investor Fidelity had been “cordial” following speculation the fund manager would call for its chairman to resign.

Weekend press reports had suggested Fidelity would demand Belfast-born chairman Harvey McGrath stand down following Prudential’s failed takeover attempt for AIA, the Asian insurance arm of AIG.

Prudential was left with a £450m bill following the collapse of its £23.97bn takeover of AIA.

The deal would have been one of the biggest foreign takeovers ever attempted by a British company, if it had gone ahead.

A Prudential spokesman said: “The meeting today between |Fidelity and chairman Harvey |McGrath was a cordial, open, and considered exchange of views. |No specific resignations were called for.”

Prudential's board has come under mounting pressure following the group's decision to abandon the takeover, with some shareholders calling for its chief executive Tidjane Thiam to go.

However, around 40% of Prudential's shares are held by its 10 biggest shareholders, the majority of whom are thought to continue to support the insurer’s management.

Fidelity holds about 3% of Prudential shares.

Belfast Telegraph