Prudential PLC: Financial Winners & Losers

Prudential PLC shares fell after the company launched its $21 billion rights issue to finance the acquisition of AIG's Asian unit.
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(Prudential PLC and other share prices brought current in this update, added GLG Partners acquisition by Man Group.)



) --

Prudential PLC

(PUK) - Get Report

was among the losers of the financial sector Monday after the U.K. insurer launched its $21 billion rights issue to finance the acquisition of an Asian business.

Prudential PLC

said it would offer 11 shares for every two existing, at 104 pence per share, an 80.8% discount to Friday's closing price of 542.50 pence. The rights issue is being held in order to finance Prudential PLC's acquisition of

American International Group's

(AIG) - Get Report

American International Assurance unit in Asia.

Prudential PLC also revised its debt financing arrangements to include facility for $5.4 billion of hybrid capital. Prudential PLC shareholders will vote on the rights issue on June 7, with 75% approval needed.

Prudential PLC will pay $35.5 billion for AIG's AIA unit, including $25 billion in cash and the remainder in stock and debt. Prudential said it will have 5.2 billion pounds ($7.7 billion) after the rights issue and takeover of AIA. Earlier this month,

Prudential PLC

delayed the rights issue as it worked with the U.K.'s Financial Services Authority over its capital position.

Prudential PLC shares trading in New York were down 23 cents, or 1.5% to $15.61. AIG shares, meanwhile, dropped 3.5% to $38.34.

Credit-card issuers were also trading lower after releasing monthly credit card metrics.

JPMorgan Chase

(JPM) - Get Report

said charge-offs fell to 9.03% in April from 9.51% in March. Delinquencies, which can be an early indicator of potential default, fell to 4.40% from 4.51%. JPMorgan shares fell 1.3% to $39.38.

Capital One Financial

(COF) - Get Report

also saw charge-offs and delinquencies fall. Capital One said its annualized net charge-off rate increased to 9.68% last month from 10.87% in March. The delinquency rate slipped to 5.07% from 5.30% in March. Shares were down 1.9% to $41.97 on the data.

Discover Financial

(DFS) - Get Report

said its net charge-off rate fell to 8.42% in April from 8.51% the month prior. The delinquency rate also dipped to 5.20% from 5.39% in March. Discover shares were falling 0.7% to $14.14.

American Express

(AXP) - Get Report

said its net write-off rate fell to 6.7% in April from 7.5% in March. Delinquencies fell to 3.1 last month from 3.3% the month prior.

Bank of America

(BAC) - Get Report

reported April total delinquencies of 6.73%, compared with 7.07% in March. However, defaults rose to 12.71% last month from 12.54% the previous month. Bank of America shares were losing 1.3% to $16.13.

Among other major U.S. bank stocks,


(C) - Get Report

fell 3.3% to $3.85,

Goldman Sachs

(GS) - Get Report

lost 1.1% to $141.66,

Wells Fargo

(WFC) - Get Report

slid 1.1% to $31.69, and

Morgan Stanley

(MS) - Get Report

was down 0.4% to $26.97.


GLG Partners

(GLG) - Get Report

jumped by 50% to $4.36 after

Man Group

said it will acquire the asset management company through a cash merger and a share exchange.

Man will acquire the outstanding common stock of GLG not subject to the share exchange for $4.50 per share. Under the terms of the share exchange agreement, Man will acquire all of the common stock held by the principals and the equity participation plan partnerships in exchange for Man ordinary shares at an exchange ratio of 1.0856 Man shares per GLG share.

-- Written by Robert Holmes in Boston


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