PRUDENTIAL SHARES - PROVISIONAL ALLOTMENT LETTER

2ofowt

I own a few shares in Prudential and have received a pile of papers relating to 'allotment'. Not very explicit but asking me to pay a sum of money to purchase new shares at a reduced price. As the shares have not been good in previous years I wondered if it was worth investing any more money or just opt out and cash in. Anyone any suggestions?

cheerfulcat

Hi,

Can't give you specific advice but I can point you in the direction of further research. Here's the Motley Fool Prudential discussion board -

http://boards.fool.co.uk/Messages.asp?mid=8779624&bid=50652

Some company info -

http://fool.digitallook.com/?action=fundamentals&ticker=pru

The rights issue seems to have been totally out of the blue, and it sent the share price crashing down. The slight upwards movement on Friday appears to be related to talk of a takeover ( but rumours like this abound, and should be taken with a pinch of salt ). The fact that they have not specified for what they intend to use the money raised by the rights issue would make me a little wary.

HTH

Cheerfulcat