Britain's second-largest insurer Prudential said today it had decided to keep its 79 per cent stake in Internet bank Egg and was no longer in talks with potential bidders.
"Our objective is to ensure that our shareholders benefit in full from the value inherent in Egg and we have concluded shareholders' interests are best served by retaining our Egg holding," chief executive Mr Jonathan Bloomer said in a statement.
Prudential has stopped and started negotiations with a number of potential buyers including British bank Royal Bank of Scotland and US credit card company MBNA but hit difficulties trying to find a bidder willing to meet its price demands, sources had told reporters.
Sources close to the situation had told reporters that Prudential, which put its stake in the online bank up for sale in January after receiving interest from potential bidders, had orginally hoped to sell for around two pounds a share.
Egg stock closed at 144 pence in London yesterday.