Prudential avoids bailout, will offer stock


Prudential Financial (PRU) announced today that it is offering $1.25 billion in common stock. This move will raise money for general business expenditures, including adding capital to insurance and repaying short-term loans. Additionally, it will enable the company, American's second-largest insurer, to avoid borrowing government bailout funds.

Citigroup and Goldman Sachs are jointly working as book writing managers on the offering, and will have 30 days to purchase up to 15 percent of the stock. Meanwhile, the offering has slightly lowered Prudential's stock: on Friday, it closed at $39.91, but had dropped to $39.02 before the bell on Monday. By 9:30, the price had rebounded to $39.51, but was fluctuating widely. In September 2008, shares were priced at $88.

Originally published