Prudential ditches AIA deal
INSURER Prudential has ditched plans to buy AIA after a last ditch bid to renegotiate the price failed.
The deal – for AIG’s Asian arm – had been beset by problems after a shareholder rebellion.
In March, Prudential agreed to buy AIA for $35.5bn (£24.6bn), but last week asked for the price to be cut to nearer $30bn to satisfy key shareholders.
The company’s chairman, Harvey McGrath, said: “We listened carefully to shareholders over the price and initiated a renegotiation of the terms with AIG. Unfortunately, it has not been possible to reach agreement. We are therefore withdrawing from the transaction.”
The Prudential says it will pay £450m ($653m) in costs to break the deal.
Chief Executive Tidjane Thiam, who has been in the job less than a year, had championed the AIA deal, which ultimately failed to impress investors.