Prudential in fresh AIA talks
Prudential, which is Britain’s second largest insurer, is in fresh talks with AIA, the Asian arm of US company American International Group (AIG).
Earlier this week, it was reported that as many as 20% of Pru’s UK investors will vote against the proposed takeover and, as a result, the insurance giant said it is in talks to renegotiate the deal.
In March, Pru announced it had agreed to buy AIA, in a deal worth $35.5 billion (£23.3 billion).
In order to finance the deal, the insurance giant unveiled details of a £14.5 billion ($21 billion) rights issue – the UK’s biggest ever.
However, investors are said to be unhappy with the deal, with the amount being paid of particular concern, as well as difficulties the company will face trying to integrate the business.
In a brief statement, Pru said: “These discussions may or may not lead to a change in the terms of the combination of AIA and Prudential.”