UK insurer Prudential has confirmed that it has rejected an approach for its loss making Web banking operation Egg. The move followed reports that American banking giant Citigroup was considering launching a rumoured £950 million bid for the Internet bank.
Prudential released a statement saying that it received "a very preliminary approach" for Egg after the Sunday Times reported that Citigroup was considering making an offer for the business.
The insurance group declined to states the value of the offer but says the approach was "speculative and conditional and not in our shareholders' interests to pursue further".
According to the Sunday Times report the approach valued Egg at £950 million, considerably less that the business's market value of £1.1 billion when it was delisted from the stock market in February.
Prudential de-listed Egg after buying out minority shareholders last December after failing to sell its majority 79% stake in the Internet bank. The group originally put Egg up for sale in January 2004 following speculation that it had received a bid from US credit card company MBNA. A plethora of other companies were subsequently rumoured to be interested in the Web bank, including Citibank.
In its statement Prudential says its focus remains on "completing the integration of Egg".
But the business has continued to underperform following its delisting. The Internet bank lost £39 million in its first half-year and in October Prudential warned that the unit was expected to report the same operating loss in the second half.