Pru tries to renegotiate AIA price

• Tweet

Prudential has reopened discussions with AIG in an effort to scale down the US$35 billion price tag of its proposed acquisition of Hong Kong-based insurance business, AIA.

Tuesday, June 1st 2010, 3:00PM 1 Comment

In a media release Prudential said: "We note the recent press speculation regarding talks between Prudential and American International Group.

"We confirm that discussions regarding the current status of the transaction have taken place between Prudential and AIG and are continuing. These discussions may or may not lead to a change in the terms of the combination of AIA Group Limited and Prudential."

The news reportedly comes after US Treasury Secretary Tim Geither urged the insurer to salvage the deal as the fall back plan the American government has been exploring to float AIA in Hong Kong, is understood to no longer be an option due to deteriorating market conditions.

Prudential needs 75% shareholder support at a crucial vote on June 7 but an investor rebellion is apparently gathering momentum both in the UK and in the US.

Comments from our readers

Commenting is closed