Prudential to sell Egg to the highest bidder

Prudential to sell Egg to the highest bidder

UK insurance group Prudential says it has received unsolicited indications of interest in its 79% stake in online bank Egg and is inviting seperate bids.

Prudential confirmed earlier this month that it was in talks to sell its majority stake in the UK's largest Internet bank. At the time, US monoline MBNA was identified as the likely bidder. In the interim, both Royal Bank of Scotland and HSBC have emerged as potential bid candidates.

Prudential's share price dropped late last week as investors express their disappointment at the lack of concrete information on the sale.

In a statment regarding a possible transaction, Prudential says it has now "begun a process that will give a number of potential purchasers an opportunity to make a proposal."

A potential bidder could pay up to 200p per share for Egg, valuing the company at £1.6 billion.

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