Prudential Corporation, Britain's largest life assurance group, yesterday launched a £1.9 billion sterling (€2.86 billion) agreed cash bid for M&G Group, one of the last remaining independent British fund managers.

The price, at about 10 per cent of M&G's £18.5 billion of funds under management, is far higher than in other recent deals in the sector.

At £25 in cash for each share, the offer was 40 per cent above M&G's closing share price on Wednesday and about 35 times last year's earnings.