Egg shares inflates with speculation
Written by JDPGlobal | Wednesday, 20 July 2005
Online financial company Egg, mainly owned by the British insurer Prudential, has manages to add more than £57m to its market value and has attributed it to pure speculation. It comes as many believe that Citigroup, the American Investment bank is preparing a take-over.
It originally set its price too high with a sale tag of £1.5bn, leading it to find no buyer but it appears now that with a new chief executive appointed to Prudential, there comes the speculation for revival plans to sell Egg.
This sale also helps to relax the attitude of the shareholders who were infuriated by Pru's controversial £1bn rights issue, this is due to the fact that the cash should now be returned to investors when the sale occurs. As an employer of about 2,000 people in the UK alone and with its profits accounting to about £5m in the first quarter alone, there would need to be a major facelift within the company.
Shares in Egg speculatively closed 8.5p up at 113.75p at the London Stock Exchange.
