Prudential is eying the use of Lloyds-style contingent capital notes, known as CoCos, to help bolster its cash reserves and revive its £24bn takeover of Asian insurer AIA.
The Guardian reports CEO Tidjane Thiam and team are looking at ways to appease the FSA after the regulator raised concerns about the capital cushion it would be left with after the takeover, forcing Pru to pull yesterday's £14bn rights issue announcement. Pru is thought to be working with its City advisers on a similar type of instrument to the Lloyds CoCo, which can convert into equity as a last resort. The paper also reports Thiam was fighting to keep his job after following the FSA intervention. An update on the bid, which has been hit with controversy since announced on 1 March, i...
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