10 May 2000

UK insurance giant Prudential has confirmed it plans to sell a minority stake in its internet bank Egg. If the stock market flotation succeeds, there could be a windfall in prospect for up to a million Egg customers if they take up the company's offer to buy some of the shares.

The marketing of the share flotation is scheduled for the end of this month and, "subject to market conditions", the offering will be priced early in June. Egg, which offers credit cards, savings accounts, mortgages and online shopping, is to invite its customers to apply for up to £1,000-worth of shares – although the offer is restricted to those who were Egg or Prudential banking customer prior to midnight on 22 February when flotation plans were first announced. UK employees both of Prudential and its subsidiary Egg are also eligible for shares, although the majority will be offered to institutional investors.

Despite its success in attracting customers, Egg has yet to make a profit. For the year ended 31 December 1999, it posted a consolidated loss of £150m.

Sourced from: BBC Online Business News