Potential Prudential Play For Lincoln Could Complicate J-P Deal
November 11, 2005 at 6:58 AM (PT)
LINCOLN NATIONAL recently announced that it will buy JEFFERSON-PILOT and, in turn, J-P's radio business, but now CITIGROUP analyst COLIN DEVINE is suggesting that PRUDENTIAL FINANCIAL may be targeting LINCOLN NATIONAL for a takeover.
DEVINE noted that PRUDENTIAL on WEDNESDAY announced a surprise convertible-debt offering that can raise up to $210 million in debt that will in small part be used to pay back debt but will mostly be used to buy an investment-grade fixed portfolio. The PRUDENTIAL deal would likely conflict with the LINCOLN purchase of JEFFERSON-PILOT and would most likely be offered to LINCOLN shareholders as an alternative to the J-P deal.