Despite recent published rumors that American Skandia was off the block, the company announced it will be sold to Prudential Insurance of Newark, N.J., for total considerations of $1.265 billion, which includes $115 million in liability. Talk of a sale has swirled around the Shelton-based company for years, heightening in the past six months as its financial stability ratings eroded.
According to investment banking sources, price and the preservation of management structure both presented sticking points to previous negotiations. CEO Wade Dokken was said to be trying to sell the business to a company that would allow American Skandia to continue to operate independently. Some have felt that Dokkens desire to stay with the company had further slowed negotiations.