Aviva and Prudential will be competing this week to win over Prudential shareholders in a series of meetings after the UK's second-largest life assurer rejected a £16.8 billion (€24.2 billion) approach from its larger rival, Aviva.

Aviva, which owns Hibernian in the Republic, is expected to approach Prudential shareholders this week to win their backing for the 700p per share all-share offer.

It wants them to put pressure on Mark Tucker, Prudential's chief executive, and Sir David Clementi, Prudential's chairman, to enter into talks on creating a £37 billion British life assurance titan insurance group.

Prudential published its 2005 results on Thursday and has a programme of investor roadshows planned. It is expected to continue with these this week.

One Prudential shareholder said he would "listen to both sides with interest".

Prudential's relations with shareholders have sometimes been strained, although a 33 per cent increase in 2005 operating profits will have smoothed the situation.

Prudential said it did not consider that the Aviva proposal was in the best interests of shareholders and had rejected it. Its board met yesterday to keep all directors informed of the situation.

Aviva executives also met yesterday to consider their response to Prudential's rejection. Among the options being considered are raising the proposed price or including a cash component. - (Financial Times Service)