Posted on May - 24 - 2010
AIA chief threatens to quit
LONDON – ASIAN insurer AIA’s chief executive has said he will quit if British insurance giant Prudential succeeds in a US$35.5 billion (S$50 billion) takeover of the business, the Financial Times reported on Tuesday.
Mark Wilson has told friends and industry executives of his plans, saying the proposals to buy the Asian arm of troubled US insurer AIG would be a ‘disaster waiting to happen,’ according to the paper.
The news threatened to cast a shadow over the start of trading in Prudential shares in Hong Kong and Singapore early on Tuesday, as the British insurer seeks to tap the region to help fund its massive acquisition.
‘Mark remains loyal to AIA, but doesn’t plan to stay with the merged group because he feels it is a disaster waiting to happen,’ one person told the FT. ‘Many colleagues feel the same way.’ One British-based investor told the paper that the departure of 43-year-old Wilson, who is based in Hong Kong, would be a blow. He is credited with saving AIA last year when American International Group (AIG) almost collapsed.
‘Because of what happened, Mark has earned the trust and loyalty of senior staff and agents,’ said the investor. Both Mr Wilson and Prudential declined comment.
Tuesday’s listings in Hong Kong and Singapore come as Prudential tries to woo Asian investors ahead of its planned US$21 billion rights issue to buy AIA in the insurance sector’s biggest-ever takeover. The listings are being done by way of introduction, which means adding trading venues without issuing new shares. — AFP
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