Pru scrambles for float amid investor jitters - papers

Prudential rushed last night to complete a Hong Kong listing for its shares amid doubts investors would approve its record $35.5bn acquisition of AIA, the Asian division of American International Group (AIG).

Blair Stewart, analyst at Bank of America Merrill Lynch, said it was by no means certain Pru investors would approve the largest in insurance history, which requires the backing of 75% of shareholders, the Times reports.

Prudential says it is accelerating its Hong Kong listing to ensure Asian investors were eligible to buy into its record $21bn (£14bn) rights issue. The proceeds will be used to part-pay for AIA.

British investors have raised concerns about the price being paid for AIA, as well as the lack of detail about the structure of the rights issue and the eight-week delay before a firm price is set.

Prudential shares came under renewed pressure yesterday after it emerged short-sellers had dramatically increased their bets that the company's share price would fall.

This morning its stock opened down 0.77%, or 4p, to 514.00p. It has fallen about 14% since the takeover was announced last Monday. Read more...

A MEMBER OF THE BANK OF ENGLAND'S Monetary Policy Committee (MPC) said last night she had "seriously" underestimated the risks from the economic crisis, the Times reports.

In her last speech before leaving the MPC, Kate Barker said, given the extent of the downturn, she was unable to look back on her 13 years as a policymaker with "the degree of satisfaction I would have wished".

She added: "Certainly, I seriously underestimated the scale of the downside risks from a potential financial crisis, and that implied overrating the ability of monetary policy to offset this shock." Read more...

HM REVENUE AND CUSTOMS (HMRC) has been severely criticised by a Parliamentary report for poor performance, bad organisation and presiding over a disengaged workforce, the Telegraph reports.

The report has caused alarm in the Government which is relying heavily on HMRC to collect the taxes necessary to reduce Britain's burgeoning deficit.

A Government insider said: "This is extremely concerning. The country's finances are in a poor enough state already and now we learn that HMRC needs rebuilding too." Read more...