Pru finding that eastern promise doesnt come cheap

By Richard Fletcher, City Editor Published: 6:15AM GMT 02 March 2010

Prudential

At $35.5bn it is the word sector"s greatest ever deal, that will be saved with the largest ever acquisition-related money call (earning outrageous fees of some-more than $1bn for the bankers). As the late Roy Castle would have put it: "It"s a jot down breaker".

A indeed transformational understanding it will emanate the series one hold up insurer in Vietnam, Philippines, Singapore, Thailand, Malaysia, Hong Kong and Indonesia. More than 60pc of the total group"s revenues will be generated in the East

Mark Tuckers fitness binds to the finish at Prudential Cazenove analysts opt for anticipation and moo-ve in to the centre of the flock Pay rows are deleterious British commercial operation Prudence and The Pru Manchester United close to new shirt sponsorship understanding with Prudential

The subject for shareholders is will it emanate value?

HSBC demonstrated on Monday the advantages of handling in the East rather than the West. Europe right away ranks as the bank"s third majority essential segment at the back of Hong Kong and the rest of the Asia-Pacific, with some-more than half of the $10.5bn investment baking increase entrance from rising markets.

But the Pru appears to be profitable a full cost for that Eastern promise. The understanding values AIA at 1.69 times embedded worth in line with Asian valuations but a estimable reward to those in the West.

The understanding is not but risks. Not slightest integration. The merger involves 23,500 staff widespread opposite fifteen opposite countries. Many of whom have been sour rivals for years,

Then there is the small make a difference of the pound. Monday"s tumble adds around �500m to the cost of the deal. A serve fall will pull that even higher.