Prudential chairman silent on claim that AIA boss will quit over £24bn bid

Prudential chairman Harvey McGrath today refused to comment on reports that the chief executive of AIA, AIG's Asian business, plans to quit if the insurer succeeds in its £24.6 billion takeover bid.

McGrath would only say: "We are very excited by all of the very talented people we have got to know at AIA."

Reports said that Mark Wilson, head of AIA, told friends and colleagues he would quit once the deal closed because he believes the combination of the two businesses is "unworkable".

That will throw further doubts on the deal which is being funded by a record-breaking £14.6 billion rights issue and needs the approval of holders of 75% of Prudential shares at a special meeting in two weeks.

McGrath said he was confident the firm would get that approval: "I think the vast majority are very comfortable with the transaction."

He was speaking in Hong Kong, where Prudential shares started trading for the first time today alongside a new listing in Singapore. At midday Prudential shares were slightly down from their opening price of HK$59.70 at HK$58.90. In Singapore they were also down from the opening price of SG$7.72 at SG$7.54.

Reports suggested Wilson, who has spent more than decade in the Asian insurance industry, might not be the only senior executive to quit if the deal goes through.

One source said: "Mark remains loyal to AIA but doesn't plan to stay with the merged group because he feels it is disaster waiting to happen. Many colleagues feel the same way."

Prudential said it had moved quickly to stabilise AIA by putting retention packages in place for senior staff.