Pru stuns City with 575m sale of Egg to Citigroup


Prudential has stunned the City by selling its Egg direct banking arm to Citigroup for £575m.

The move casts doubt on the advertising pitch called by Prudential late last year to consolidate its advertising for the Pru, Egg and its M&G Investments arm.

The decision to sell the troubled banking arm is a u-turn by chief executive Mark Tucker who had abandoned previous attempts to offload the business. A year†ago Prudential bought back the shares in Egg it didn’t own and began efforts to consolidate the businesses.

Tucker admits that trading has worsened at Egg in recent months and that the business is now expected to suffer operating losses of £145m for the year to the end of 2006.

Citigroup is the world’s largest credit card issuer. Tucker says it sees "enormous opportunities to develop Egg’s business in the UK". Egg was set up by the Pru in October 1998 and provides banking and financial services products via the internet and telephone.

Tucker plans to update the market with further details by March 15.

A Pru spokesman says it is "too early to say" what effect the sale will have on the ongoing advertising pitch or its marketing arrangements.

Last week Mother, which handles Egg’s advertising, was knocked out of the consolidation pitch.

Latest from Marketing Week


Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now


Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.


From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.


Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3703 or email

If you are looking for our Jobs site, please click here