Prudential denies strategic review talk

PRUDENTIAL has dismissed suggestions that a strategic review had suggested it should sell its US division and focus on its Asian business.

A report in a Sunday newspaper suggested the insurer had called in its broker Goldman Sachs to carry out a strategic review of the business to ease investor concern about its inherent value. The review was believed to suggested that if the insurer needed to dispose of an asset it should sell its US operation rather than its Asian business.

But a spokesman for Prudential said no such review had been conducted adding: “As part of our normal planning process we routinely seek external advice. That is normal for Prudential and it is inaccurate to say that is a strategic review. It is not.”

Prudential has had a difficult year after a $35.5bn (£22.5bn) bid for AIA, the Asian business of American International Group, fell through.

The Insurer was forced to lower its initial offer for AIA following shareholder concern that it overvalued the company.

Some shareholders are believed to have been angered by the way the bid process for AIA was handled.

The bid is estimated to have cost the company $450m.