Prudential Investors Approach C&WC Chairman - Source
08 Juli 2010 - 2:46PM
Dow Jones News
Cable & Wireless Communications PLC (CWC.LN) Chairman
Richard Lapthorne has been approached by some key investors in
Prudential PLC (PRU.LN) to replace the insurer's current Chairman
Harvey McGrath, a person familiar with the situation told Dow Jones
Newswires Thursday.
Lapthorne, 67, is considering the position but hasn't decided on
it yet, the person said.
The approach to Lapthorne indicates that some shareholders in
Prudential are still keen on changing the insurer's top
management.
McGrath and Prudential Chief Executive Officer Tidjane Thiam
have been under pressure to leave after Prudential failed last
month in its planned $35.5 billion bid to buy American
International Group Inc's (AIG) Asian unit AIA Group Ltd.
There is a GBP450 million cost attached to the failed deal,
worth nearly as much as the GBP503 million the insurer paid in
dividends last year.
Lapthorne, who was appointed C&WC's chairman in January,
having served as Cable & Wireless PLC chairman since January
2003, couldn't be reached for comment. He has also recently served
as chairman of private-equity owned U.K. fashion retailer New Look
and of the automotive group McLaren Group, according to C&WC's
website.
Nobody was immediately available to comment at Prudential.
Since the cancellation of the offer for AIA, some shareholders
have been persistent in quietly calling for the resignations of
McGrath and Thiam.
Former City Minister Paul Myners, former Zurich Financial
Services CEO James Schiro and former Prudential CEO Mark Tucker
have been reported as possible choices to replace McGrath.
Michael McLintock, CEO of M&G Investments, Prudential's
investment management arm, has been reported as a choice to replace
Thiam.
Myners, Schiro and Tucker have long worked in the financial
industry, leaving a question on whether Lapthorne, with his
background in the industrial sector, could be a perfect fit for
Prudential.
Previously, Lapthorne was also a senior executive at the
conglomerate Unilever PLC (ULVR.LN). He was also Vice-Chairman of
British Aerospace PLC.
"Lapthorne is one of the big guns in the U.K. Putting him in
Prudential can boost the credibility of the company," an analyst
said.
"British Aerospace was an international company and operated on
long-term contracts. Prudential is fairly similar, but with
different products and different methods of distribution. Sure,
Richard Lapthorne could be chairman if that's what shareholders
want," the analyst said.
-By Vladimir Guevarra, Dow Jones Newswires; +44 (0) 2078429486,
vladimir.guevarra@dowjones.com
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