Prudential's problems mount during acquisition bid

Article from: 
UK
Mon, 21/06/2010 - 15:09

BrandIndex shows the insurance giant Prudential's scores slipping since its announcement that it intends to acquire the Asian life insurance firm, AIA.

BrandIndex has witnessed a dramatic drop in Prudential's 'Buzz' score, which is measured by taking those who have heard something positive about a brand in the last week and subtracting those who have heard something negative.

On 19th May, Prudential's 'Buzz' score fell to -3.1 in a response to plans that the firm hoped to raise the funds needed for the acquisition in what has been named as the world's largest rights issue. Since setting its sights on AIA, Prudential has found itself in the media spotlight for all the wrong reasons and its 'Buzz' score has mirrored the negative coverage. The chairman Harvey McGrath has seen his position become increasingly insecure, following the revelation that the banks underwriting the deal were in line to receive as much as $850million in fees and the cost of the ultimately failed bid, rumoured to be £450million.

As a result of Prudential's problems the brands 'Buzz' dropped to -8.6pts on 15th June, a year low for the brand.

Prudential's 'Buzz' score
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