today's figures could not be described as exciting, yet the shares are now +20 at 650 after a low of 615 ..... back in april, aviva made an approach but terms could not be agreed ..... under SE rules, that meant no new approach could be made for 6 months (i assume that only applied to aviva) ...... for all that, if PRU's sp continues to thrive, why question?

1/2 year results due on thursday, so either just some profit-taking today, or someone knows more than we do .... both are distinct possibilities

well done cynic .... good call that one!
sp now toying with this minor resistance, but decided to cash in my very tasty profit (514) but shall continue to watch with a view to re-buying at some point

PRUDENTIAL PLC TO SEEK LISTING ON THE HONG KONG STOCK EXCHANGE
UPDATE ON COMBINATION WITH AIA



Further to the announcement on 1 March 2010, in relation to the combination of Prudential plc ("Prudential") and AIA Group Limited ("AIA"), Prudential today is pleased to announce that it is able to accelerate its plans for seeking a listing of its ordinary shares on the Hong Kong Stock Exchange. Prudential has made an application to the Hong Kong Stock Exchange for the listing of, and permission to deal in, its shares and it is now aiming to have the listing effective prior to launch of the rights issue announced on 1 March 2010.

Prudential puts its case for AIA takeover

Prudential will launch a charm offensive this week in an attempt to quell the nerves of its leading investors about its $35.5 billion agreed bid to buy AIA in Asia and pay for it with a $21 billion rights issue.

might be an interesting one to short if sp hits 200 dma at about 540, not least because the markets are starting to look a bit toppy to me

cynic - you may well be right - I'm long from 502 with stop in place and in profit.

Broker note from Merrill Lynch:
"We summarise our thinking on the Prudential/AIA deal having digested the detail
and engaged in many conversations with investors. It has become apparent, in
our view, that shareholder approval of the deal should not be seen as a given.We
think the prospects of gaining 75% approval are finely balanced. In terms of the
share price, we see three main scenarios from here and set out our thinking on
how investors should position for these:
* The shares come under sustained pressure. The shares look vulnerable
down to the c450p level at which point the chances of the deal breaking and
a snap back to c600p pre-deal becomes high enough to discourage selling
*The shares become range bound until the rights issue period. This is
a more likely scenario, in our view. Our analysis of past rights issue patterns
suggests it is possible the shares come under most pressure in the early
days of the ex-rights period before recovering in the latter part of this period.
*The shares recoup initial losses and rally into the deal. In this case the
deal starts to look less dilutive and the chances of a successful vote increase.
Win / win from here; retain Buy
From current levels, we see something of a win/win situation over a 12 month
view. The shares either go up; or the shares go down giving a more attractive
entry point for the bounce that we believe will happen if a) the deal is abandoned
or voted down; or b) the deal goes ahead and a re-rating occurs over the
subsequent months. This is predicated on our view that the combined entity is
undervalued at less than 12x EPS; and that Prudential is even more attractive on
a stand alone basis at less than 10x EPS. Reiterate Buy rating; PO 750p."

.

Just closed @548 +46

sp teased through 200 dma but failed ...... quite possibly time to short

Yes - I'm glad to be flat!

Pru saves Asia deal with 11th-hour pact

PRUDENTIAL saved its blockbuster takeover of an Asian rival yesterday after stitching together a last-minute deal with the Financial Services Authority.

Details of the arrangement are expected to be announced tomorrow. It is understood that Prudential has agreed to provide a 1 billion backstop fund to meet the FSAs concern about the adequacy of its capital reserves.

Prudential PLC Revised AIA Offer Rejected By AIG
By Digby Larner
Of DOW JONES NEWSWIRES

U.K. insurer Prudential PLC's (PRU.LN) attempt to seal the biggest-ever insurance takeover suffered a major setback Tuesday after it failed to lower the cost of its $35.5 billion agreement to buy American International Group Inc.'s (AIG) largest Asian life-insurance unit.

Prudential said it is considering its position after AIG rejected a proposal to slash the value of the deal to $30.375 billion.

AIG said in a separate statement that, "after careful consideration, the company will adhere to the original terms of its previously announced agreement with Prudential PLC for Prudential to acquire AIG's wholly owned pan-Asian life insurance subsidiary AIA Group Limited. The company will not consider revisions to those terms."

The planned tie-up has been dogged by worries from shareholders about the cost and the execution risk.

Some of Prudential's top shareholders, including Blackrock Inc. (BLK), Legal & General (LGEN.LN) and Fidelity, are clamoring for a new price as low as $30 billion, or about 15.5% less than the original price, the Wall Street Journal said Friday, citing a person familiar with the matter.

AIG and the U.S. government, which owns a nearly 80% stake in the insurer, intend on using much of the proceeds to repay U.S. taxpayers for part of the $132 billion bailout AIG received during the financial crisis.

Prudential shareholders are due to vote on the AIG deal June 7. Some shareholders have also criticized the $21 billion of cash they would need to put up to help pay for the acquisition of AIA Group Ltd.

Last week, Prudential reiterated that the AIG deal was in the best interest of shareholders amid continued reports of growing shareholder discontent.

"There is no change to our position. As we have said, we believe this opportunity will deliver substantial long-term value for our shareholders," a spokesman said.

The Prudential said Tuesday that the proposed new deal comprises $23 billion cash and 2.16 billion newly issued shares of Prudential; $2 billion in aggregate principal amount of perpetual tier one notes to be issued by Prudential.

Prudential shares closed Friday at 541.5 pence valuing the company at GBP13.75 billion.

PRUDENTIAL PLC
PROPOSED TERMINATION OF AGREEMENT TO COMBINE WITH AIA GROUP LIMITED


Further to its announcement yesterday, Prudential plc ("Prudential") announces that it is in negotiations with American International Group, Inc. ("AIG") for the termination of the agreement (the "SPA") for the combination of Prudential with AIA Group Limited ("AIA").

If, as expected, the agreement with AIG is terminated, the Board of Prudential will not put any resolutions to the court and shareholder meetings convened for 7 June 2010 and it will not be proceeding with the rights issue or other financing relating to the Transaction. The reconvened Annual General Meeting will go ahead as planned on 7 June 2010.

Prudential plc - Termination of Agreement


TIDMPRU

RNS Number : 9968M
Prudential PLC
03 June 2010

?
For immediate release

3 June 2010

PRUDENTIAL PLC
TERMINATION OF AGREEMENT TO COMBINE WITH AIA GROUP LIMITED

Further to its announcement yesterday, Prudential plc ("Prudential") confirms
that its agreement with American International Group, Inc. ("AIG") for the
combination of Prudential with AIA Group Limited (the "SPA") has been
terminated.

Accordingly, the Board of Prudential will not put any resolutions to the court
and shareholder meetings convened for 7 June 2010 and it will not be proceeding
with the rights issue or other financing relating to the Transaction. The
reconvened Annual General Meeting will go ahead as planned on 7 June 2010.

Prudential will pay AIG a termination fee of GBP152.569 million (including VAT,
if any). Prudential and AIG have agreed to release and waive any claims each
may have against the other.


ENDS

Trading Update

PRUDENTIAL PLC TRADING UPDATE



Group-wide sales of 1,355 million for the first five months of 2010 up 27 per cent

Strong performance in Asia, with sales up 33 per cent to 579 million in the first five months of 2010

Record retail sales in the US. Outperformance continues with new business sales of 454 million, up 41 per cent

Prudential UK up 4 per cent at 322 million

Interim Management Statement.

PRUDENTIAL PLC THIRD QUARTER 2010 INTERIM MANAGEMENT STATEMENT


CONTINUED STRONG MOMENTUM WITH 9 MONTH NEW BUSINESS SALES OF 2,464 MILLION


GROUP-WIDE SALES OF 2,464 MILLION UP 24 PER CENT. NEW BUSINESS PROFIT UP 21 PER CENT


ROBUST GROWTH IN ASIA CONTINUES WITH YEAR TO DATE SALES UP 32 PER CENT AND YEAR TO DATE NEW BUSINESS PROFIT UP 34 PER CENT. HIGHEST THIRD QUARTER SALES FOR OUR ASIAN BUSINESS, UP 25 PER CENT


SUSTAINED SALES MOMENTUM IN US. YEAR TO DATE SALES UP 33 PER CENT AT ATTRACTIVE MARGINS


UK FOCUS ON VALUE OVER VOLUME CONTINUES TO DELIVER HIGHER NEW BUSINESS PROFIT, UP 14 PER CENT


ASSET MANAGEMENT NET INFLOWS OF 6.2 BILLION, DRIVEN BY VERY HEALTHY M&G RETAIL NET INFLOWS OF 5.1 BILLION


CAPITAL POSITION REMAINS STRONG - IGD SURPLUS ESTIMATED AT 3.4 BILLION 1

Looks like quite a few of the big insurers are reporting interim results this coming week (AV., PRU etc). Results are expected to be pretty good according to press reports, so might be a good opportunity for a trading bounce. Also increased divi from the PRU expected (up 20% ?).

Yes a busy week with updates from Aviva, L&G, Old Mut and RSA. RSA and Aviva on Thursday.

Blackrock < 5%