Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Ebola virus : Liberia shuts most border points

Read more

MEDIAWATCH

"What would you do?"

Read more

DEBATE

Too Late for Sanctions? Pressure Mounts on Russia over Ukraine (part 2)

Read more

DEBATE

Too Late for Sanctions? Pressure Mounts on Russia over Ukraine

Read more

FOCUS

As France’s Carrefour pulls out, what next for India’s retail market?

Read more

#TECH 24

Internet of Things

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014 (part 2)

Read more

REPORTERS

Halal tourism on the rise

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014

Read more

  • Israel warns of ‘prolonged’ campaign in Gaza

    Read more

  • In pictures: From Gaza to Mosul, bittersweet end of Ramadan for Muslims

    Read more

  • France offers asylum to Iraqi Christians

    Read more

  • Moroccan police arrest French al-Qaeda recruiter

    Read more

  • Russia ordered to pay Yukos shareholders over $50bn in damages

    Read more

  • French mayor files complaint against US father who risked kids’ lives on Mont Blanc

    Read more

  • French footballer Griezmann headed to Atletico Madrid

    Read more

  • Luc Besson’s sci-fi thriller ‘Lucy’ tops US box office

    Read more

  • Video: Slaviansk mourns mass grave victims

    Read more

  • France honours those lost on Air Algérie Flight AH5017

    Read more

  • Video: Ethiopia turns to wine to boost image, economy

    Read more

  • Thousands gather in Marseille in support of Israel

    Read more

  • As France’s Carrefour pulls out, what next for India’s retail market?

    Read more

  • Liberia tightens border controls to curb Ebola outbreak

    Read more

  • The centenary of Austria-Hungary’s calamitous last hurrah

    Read more

  • UN Security Council calls for immediate Gaza ceasefire

    Read more

  • Nibali joins elite group with Tour de France win

    Read more

  • France calls on its nationals to leave Libya as violence escalates

    Read more

  • Boko Haram kidnap Cameroon minister's wife in deadly attack

    Read more

Business

AIA deal in jeopardy as AIG rejects Prudential offer

Text by News Wires

Latest update : 2010-06-01

Prudential's bid take over AIG's Asian unit, AIA, is in danger of collapsing after the American insurer rejected a plea by the British company to cut the price tag from $35.5 billion to $30.375.

REUTERS - American International Group said it would not consider revising the terms of a deal for its Asian life insurance unit with British insurer Prudential Plc, in a move that threatens to derail the industry's largest ever transaction.

Separately, Prudential said in a statement it had offered to cut the deal's value to $30.38 billion -- offering $23 billion in cash and about 2.16 billion new Prudential shares.

It noted AIG's announcement and said it was considering its position.

Prudential and American International Group Inc reopened negotiations last week to salvage the deal for Hong Kong-based AIA after many shareholders said Prudential was overpaying in its move to become Asia's dominant insurer.

Prudential was seeking $21 billion from investors to partly fund the transaction, the biggest-ever rights offer by a British company. Shareholders are due to vote on the deal on June 7.

A collapse of the deal would be a blow to AIG boss Robert Benmosche, who wants to repay part of the $132 billion bailout the U.S. insurer received in 2008 to stay in business.

It would also put Prudential CEO Tidjane Thiam in a tough position as he had championed the AIA deal, the insurance sector's biggest-ever takeover, arguing it gave the 162-year-old British insurer a rare opportunity for a commanding presence in fast-growth Asia.

"It's going to be hard for Prudential to gather support for the vote they need, after having gone out saying they are renegotiating and failed to do so," said one source familiar with the transaction.

 

Date created : 2010-06-01

  • INSURANCE

    Prudential seeks AIA price cut to salvage deal

    Read more

COMMENT(S)