Investors get engaged

Empire building can be a fine pursuit and is the reason why some of the world's great companies are the money-making, dividend-paying growth vehicles they are today.

However, there does come a time when empires overreach themselves, and when overambitious leaders need to be checked, or in the end shareholders will ultimately get burnt. So, with the memories of the destruction in value for RBS shareholders still fresh in their minds, fund managers have pulled the plug on Prudential’s attempted purchase of AIA. From the Prudential’s point of view, it wanted to dominate the Asian market with one bold move. However, investors – most vocally Neptune’s Robin Geffen – saw too much risk in the deal, not least because, despite the huge price tag, the acquisit...