Feeds

Pru pulls out of great Egg race

Cans plans to sell Internet bank

  • alert
  • submit to reddit

Build a business case: developing custom apps

The Prudential has canned plans to flog its stake in UK Internet bank Egg claiming that it makes better financial sense to hang on to it.

Today's announcement ends months of speculation that the Pru would cash in on its 79 per cent stake in Egg. A number of companies - including US investment bank, JP Morgan, MBNA, Capital One and the Royal Bank of Scotland - have all been associated with a possible acquisition at some time or other.

Now, this long running saga of "will they, won't they" appears to be over with the Pru says it's "no longer in discussions regarding a possible transaction". Instead, execs at the Pru reckon that "retention of its 79 per cent stake offers better value to its shareholders than the sale of Prudential's interest".

Said Jonathan Bloomer, group chief exec of Prudential: "We had an obligation to explore all the options for the business following the approaches we received. Our objective is to ensure that our shareholders benefit in full from the value inherent in Egg and we have concluded shareholders' interests are best served by retaining our Egg holding.

"Egg has brought significant change to the market, with a track record of delivering innovative products and services to customers. It is a very successful business in the UK with significant potential to grow in value."

The "potential" of Egg means getting the most out of its UK business while following through with plans to close its loss-making French business.

And investors' response to today's news? The price of Egg's shares dropped like a sack of potatoes. In the first few hours of trading Egg shares were down 32p (22 per cent) at 112p. ®

Related stories

Egg still hasn't got a buyer
Egg flees France
Egg attracts interest from Capital One
Egg punters up, losses down
Lloyds TSB leads the great Egg race

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
Amazon says Hachette should lower ebook prices, pay authors more
Oh yeah ... and a 30% cut for Amazon to seal the deal
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
Chips are down at Broadcom: Thousands of workers laid off
Cellphone baseband device biz shuttered
Feel free to BONK on the TUBE, says Transport for London
Plus: Almost NOBODY uses pay-by-bonk on buses - Visa
Nintend-OH NO! Sorry, Mario – your profits are in another castle
Red-hatted mascot, red-colored logo, red-stained finance books
Twitch rich as Google flicks $1bn hitch switch, claims snitch
Gameplay streaming biz and search king refuse to deny fresh gobble rumors
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.