The bid from Citigroup falls short of the business’ market value of GBP1.1 billion when it was de-listed from the stock market in February 2006.
It was clear that it was speculative and conditional and not in our shareholders’ interests to pursue further, stated Prudential to the London Stock Exchange.
Last year, the major UK insurer committed itself to the online business through purchasing the remaining 22% stake in the firm which it did not own, after contemplating a possible sale.
Following Egg’s de-listing, the business has encountered a number of difficulties, including incurring losses of up to GBP150 million through its attempted expansion into France.
Prudential shares have risen by 20% this year, closing at GBP6.86 per share as at December 8, 2006, roughly level with its value earlier in the year after it rejected a GBP17 billion approach made by the rival Aviva.
