Prudential names Paul Manduca as new chairman

Prudential, Britain’s biggest insurer, has appointed Paul Manduca as its new chairman, ending a five-month search for a successor to the outgoing Harvey McGrath.

Manduca founded British fund manager Threadneedle and has been Prudential’s senior independent director since January 2011 and will take over as chairman on 2 July.

Manduca will have to deal with a number of challenges, including the recent shareholder pay revolt that saw a third of Prudential investors voting against the company’s executive pay plans and the threat of forthcoming Solvency II reforms.

Former chairman McGrath announced his departure in December, seven months after a fifth of Prudential shareholders voted against his reappointment in protest over the company’s failed $35.5bn (£22.6bn) bid for Asian rival AIA in 2010.

US consumer sentiment at highest point in four years

US consumer sentiment rose to its highest level in more than four years in May as Americans stayed optimistic about the job market, while higher income households expected to see bigger wage increases, according to a new survey.

The Thomson Reuters/University of Michigan’s final reading on the overall index on consumer sentiment rose to 79.3 from 76.4 in April, topping forecasts for 77.8 and an initial May reading of the same.

It was the highest level since October 2007.

“Unfortunately, consumer confidence is still extremely vulnerable to a reversal, as occurred in the past two years,” survey director Richard Curtin said.

“While their most optimistic expectation for job growth could go unfulfilled without much harm, if the recent slowdown in job growth persists in the months ahead, it could form the basis for a third retreat in confidence.”

HSBC pay plan opposed by 10 per cent of shareholders

HSBC’s pay plan for directors was opposed by 10.2 per cent of shareholders at the bank’s annual meeting today, less than the previous year as Europe’s biggest bank avoided the kind of shareholder backlash seen by competitors.

HSBC said 86.3 per cent of votes cast were in favour of the resolution on remuneration while 13.7 per cent of shareholders either voted against the plan or withheld their votes.

Last year 18.7 per cent of shareholders opposed the bank’s pay plan.

The City has been rocked by the events of the ‘shareholder spring’ that has claimed the chief executives of Aviva and Trinity Mirror after investors signalled that they were not willing to accept pay rises for directors while shares continue to under perform.

This week the government published details of the Enterprise Bill which will hand shareholders a binding vote on executive pay deals.

Former Lloyds anti-fraud boss on £2.5m false expenses charge

The former head of digital banking fraud and security at state-backed Lloyds bank has been charged with defrauding her employer by submitting £2.5m worth of false expense claims.

Crown Prosecution Service (CPS) says it has authorised the Metropolitan Police to charge Jessica Harper with one count of fraud by abuse of position.

The CPS said the charge related to an allegation that Harper submitted false invoices to claim payments totalling £2,463,751m to which she was not entitled between September 2008 and December 2011.

“This decision to prosecute was taken in accordance with the Code for Crown Prosecutors. We have determined that there is a realistic prospect of conviction and a prosecution is in the public interest,” said Andrew Penhale, Deputy Head of the CPS Central Fraud Group.

Harper will appear before Westminster Magistrates Court in London on May 31.

Thomas Cook announce new chief executive

Thomas Cook has appointed Premier Farnell boss Harriet Green as its new chief executive, ending a nine-month search for Manny Fontenla-Novoa’s successor after string of profit warnings prompted  his departure last year.

Green, who has been at the helm of the FTSE-250 electrocomponents distributor since 2006,  will take over from Sam Weihagen, Thomas Cook’s interim chief executive, on 30 July.

Shares in the debt-laden company, which recently secured a £1.4bn refinancing package, jumped almost 10 per cent as investors welcomed the news.

Frank Meysman, Chairman said: “Harriet is an extremely successful executive with the right combination of international, business transformation and ecommerce experience that we need to take the Group forward, and build on our strong reputation and brand.”

Green graduated with a degree in medieval history before embarking on a career in engineering. A yoga enthusiast, she is married with two grown-up children. In 2010, she was awarded the OBE for services to the electronics industry.

Thomas Cook announce new chief executive

Thomas Cook has appointed Premier Farnell boss Harriet Green as its new chief executive, ending a nine-month search for Manny Fontenla-Novoa’s successor after string of profit warnings prompted  his departure last year.

Green, who has been at the helm of the FTSE-250 electrocomponents distributor since 2006,  will take over from Sam Weihagen, Thomas Cook’s interim chief executive, on 30 July.

Shares in the debt-laden company, which recently secured a £1.4bn refinancing package, jumped almost 10 per cent as investors welcomed the news.

Frank Meysman, Chairman said: “Harriet is an extremely successful executive with the right combination of international, business transformation and ecommerce experience that we need to take the Group forward, and build on our strong reputation and brand.”

Green graduated with a degree in medieval history before embarking on a career in engineering. A yoga enthusiast, she is married with two grown-up children. In 2010, she was awarded the OBE for services to the electronics industry.

Barclays to sell $6bn BlackRock stake

Barclays bank is to sell all of its $6.1bn (£3.8bn) stake in US asset manager BlackRock, which it has held for almost three years.

Barclays said the shares would be sold by way of an offering and a related buyback by BlackRock of up to $1bn of the stock. A prospectus was filed by BlackRock on Monday.

Barclays holds BlackRock common stock and convertible stock that represent 19.6 percent economic interest in the firm. The holding dates from the UK bank’s sale of Barclays Global Investors to BlackRock in June 2009.

Facebook shares close just above IPO price

Shares in social network firm Facebook closed just a few cents above its IPO price at $38.23 – despite jumping 12 per cent to $42 in initial trades.

The eight-year-old firm listed this morning on the NASDAQ index and shares began trading at 11.30am local time (4.30pm BST), thirty minutes later than expected after the exchange struggled to start the live trading.

Facebook’s flotation has become the third largest IPO in US history later, after pricing its shares at $38 each – the top end of an already increased price range – giving the social network an initial valuation of $104bn (£65bn) and raising an eye-watering $16bn for the firm.

The float comes at the end of a week that has seen the IPO jump in both size and price as Facebook struggled to meet demand for its shares.

Only General Motors and credit card firm Visa have had bigger IPOs and the offering gives the eight-year-old company, founded in a Harvard bedroom, a valuation equivalent to Amazon.com and exceeding that of Hewlett-Packard and Dell computers combined.

PLUS Markets sells stock exchange to ICAP

Troubled exchange operator PLUS markets announced this afternoon that it has offloaded its flagship market to interdealer broker ICAP – just days after the board said the group will be wound up.

The deal, valued at just £1, will see ICAP take over PLUS Stock Exchange Ltd on a cash-free, debt-free basis.

“PLUS-SX remains a loss making business. The disposal will, therefore, help both the Group preserve remaining shareholder value and protect the reputation and continuity of the RIE for its existing listed and quoted companies,” PLUS said in a statement.

PLUS said move will allow firms to maintain their listing on the index: “ICAP is well positioned to leverage PLUS’ exchange status to offer new products and solutions for its customers including, in time, listed derivatives. Moreover, ICAP has separately confirmed today that it is committed to continue supporting and expanding the PLUS equities listings
venue which provides growth capital for smaller companies.”

PLUS has struggled since it was formed in 2005 and unaudited management accounts for the period to 30 June 2011 show losses of over £1m attributable to PLUS-SX, with a further £5.7m losses for year ended 31 December 2010

Banknote producer prepares for potential Greek currency

Banknote producer De La Rue has drawn up contingency plans to print drachmas should Greece exit the euro and approach the British money printer.

A source said that as a commercial printer De La Rue needed to be alive to the possibility of a Greek exit from the single currency and prepare accordingly.

Panmure analyst Paul Jones said the firm would be in with a chance of work if extra capacity was needed and could also benefit from other work as Greek printers were less likely to be quoting for contracts elsewhere.

“If they (Greece) decide to pull out of the euro the first thing is it won’t be an overnight job, partly because of the implications of what they are trying to do but secondly because of the sheer number of banknotes that are needed to replace a currency,” Jones said.

“It will be a huge job which the state printing works will do, but they will probably pull in some additional volume from outside and De La Rue will be in with a chance.”