AIG snubs Prudential bid to cut Asian takeover deal price
Prudential’s bid for the Asian arm of AIG was in danger of collapsing today after the American insurer snubbed an attempt to cut the price of the deal.
The Pru approached AIG with revised terms after it became apparent that it would struggle to gain the required 75% support of shareholders for its original takeover proposal.
It cut the price tag from $35.5bn to $30.4bn but this was rejected by AIG overnight.
The takeover would have given Pru around 30 million customers in Asia and see the Asian operation become by far the group’s biggest division – contributing around 60% of new business profit.
The Pru said it was considering its position today after AIG made it clear that it would not consider any further revisions to the original terms.
