The concept of being prudent has taking a hammering recently. Our previous prime minister famously talked about his prudent budgets; and we know where that ended up. I feel that Prudential could be biting off more than it can chew in pursuing such a large takeover. The world economy is lurching from crunch to crisis, is this the right time? Consider what happened to Lloyds Bank when it took over HBOS.
America has been the graveyard of many fine British companies. Our leaders mistakenly believe that because we speak a similar language we have a shared culture. But their ethics are not ours, and even our accounting procedures are different. As it stands, Prudential is weathering the storm well: profits are rising; it is geographically well diversified. Such a huge transaction could pose considerable risks. Thousands of people rely on the company for their pensions, and want a conservatively run business.
http://www.prudentialactiongroup.com/ Tel 0207 788 7589
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