Prudential Hiring Non-Executives As Board, Holder Talks Continue

By Jessica Hodgson Of DOW JONES NEWSWIRES LONDON (Dow Jones)--Prudential PLC (PRU.LN) Thursday confirmed that it is seeking to recruit two non-executive directors, but denied a press report that one of them was being lined up to replace senior non-executive director James Ross. At least one of the non-executives is being recruited to replace Sir Win Bischoff, a spokesman said. A former non-executive, Bischoff left Prudential in 2009 to chair Lloyds Banking Group PLC (LYG). The spokesman confirmed that a recruitment firm is seeking to make the appointments. The attempt to strengthen the U.K. insurer's board comes amid continued discussions between the Prudential and some of its major investors in the aftermath of an ill-fated attempt to acquire the Asian arm of insurer American International Group Inc. (AIG) for $35.5 billion. Prudential's Chief Executive Officer, Tidjane Thiam, and Chairman, Harvey McGrath, have both faced calls to step down from shareholders over the deal, which was abandoned amid complaints that the deal and a planned rights issue which would have been used to fund it, were too expensive. Shareholders in particular were angry about the roughly GBP450 million of costs associated with the failed bid. Various major shareholders continue to press the board to remove one or both of Thiam or McGrath, people familiar with the matter have told Dow Jones Newswires, and some shareholders have contacted potential replacements for McGrath, including Richard Lapthorne, the Chairman of Cable & Wireless Communications PLC (CWC.LN). Former City Minister Lord Myners, ex Zurich Financial Services AG (ZURN.VX) CEO James Schiro and former Prudential CEO Mark Tucker have also been named by shareholders as possible replacements for McGrath, according to press reports. Press reports Thursday said one of the two non-executives was being lined up to replace James Ross, the senior Prudential independent non-executive, who is planning to step down next year. A Prudential spokesman said Ross had given no indication he was planning to step down and reiterated that the company wasn't planning to replace its Chairman. -By Jessica Hodgson; Dow Jones Newswires; +44207 8429373; jessica.hodgson@dowjones.com. (END) Dow Jones Newswires July 15, 2010 05:56 ET (09:56 GMT)