Thaim for the boot?

[Rocksteadyeddie]

So overpaying for a foreign adventure. Chunky break costs / fees. Leaves the existing business model a bit, well, devalued.

Can he limp on do we think ?

[Andy Zarse]

No he has to go immediately.

He's spunked £500 million of the company's money on a badly planned attack. This includied a $150 million break penalty clause (with people who are basically having a fire sale!) if Pru pulled out and he negotiated the whole without securing the backing of his investors... what a prat!

[Pesty]

who is thaim and whay has he done in a nutshell?

[Rocksteadyeddie]

Pesty said:

who is thaim and whay has he done in a nutshell?

Chief Exec of the Pru. Launched abortive attempt to take over AIG's Asian assets, without getting a steer that the company's owners were prepared to back him. Offered too much. Shareholders revolted. Deal fell over. Has to pay £150 mio to AIG in break costs, and £450 mio in fees. Shareholders not chuffed.

[Pesty]

Thanks,

Not being up on these things don't the share holders have their share of the blame of revolting and causing the break costs? If they had backed the move could there have been potential for profit even if he did pay too much?

[Rocksteadyeddie]

Yes and yes. Both thing are true and possible.

In the scheme of things £150 mio is neither here nor there. It is more the trashing of The Pru's existing strategy that Thaim went through to justify the AIA purchase. Having disowned the existing strategy is he really the best person to implement it?

[Pesty]

Thanks again, I see what you are saying.