Amid calls for his resignation, Prudential CEO Tidjane Thiam is expected to offer an apology to shareholders at the company’s annual meeting next week, Reuters reports. Prudential is estimated to have racked up $658.8 million in adviser fees and other costs during the scuttled acquisition attempt.
The deal’s disintegration is also causing friction amongst AIG’s top management, as the company looks to sell of business units in order to pay back the assistance the company received from taxpayers during the financial crisis. According to published reports, the relationship between AIG CEO Robert Benmosche and AIG Chairman Harvey Golub has become strained in recent weeks. Benmosche was reportedly amenable to accepting the proposed $35.5 offer for AIA Group Ltd., while the board, led by Golub, rejected the idea by an overwhelming margin.
According to an article in Bloomberg, in the wake of the board’s decision, Benmosche threatened to resign unless he was given a freer hand to run the company.