City of London institution M&G looks ripe for a break-up
The imminent appointment of a new chief executive at M&G is set to reignite a vexed question: is it time to break up the underperforming FTSE 100 savings and investment group?
M&G’s unwieldy structure — a £150bn asset management business attached to a near £200bn retail and savings division — may no longer be fit for purpose, according to some investors.
Three years after the company’s relaunch as an independent business following its demerger from UK insurer Prudential, some critics argue it should be split up again.
“M&G could just carry on, paying out a large dividend,” said the industry veteran. “But it has a lot of reputation to rebuild.”
Another insider cautioned against dithering: “Hand on heart, if someone said would you sell M&G at the price it is today, I’d say yes because it will probably be worth less in a year or two.”
Additional reporting by Chris Flood in London
This story originally appeared on: Financial Times - Author:Harriet Agnew
