Prudential passes on TARP funding; to issue stock

[June 01, 2009]  NEW YORK (AP) -- Prudential Financial says it will not take funds from the government's financial rescue program, but is planning to raise $1.25 billion on its own through the sale of common stock.

The Newark, N.J.-based insurance and financial services firm says it will not participate in the Treasury Department's Troubled Asset Relief Program. Last month, the government said it would allow six major insurers to tap the program for additional capital.

Prudential says it is launching a public stock offering to raise $1.25 billion. It will use the new cash for general corporate purposes, which could include adding capital to its insurance subsidiaries and for the repayment of short-term debt.

[Associated Press]

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