AIA sale, Prudential backs down

The sale of AIA to Prudential has been cancelled because of non-agreement over the price. The  opposition of the shareholders to the disbursement of 35.5 billion USD has compelled Prudential's executives to renegotiate the terms of a first agreement. But AIG's refusal to cut the cession price of its Asian subsidiary down to 30 billion USD has put an end to this transaction. This takeover would have been the most important one in the history of insurance and would have required a capital increase of 21 billion USD. Prudential will, nonetheless, pay 666 million USD for this foiled attempt, 225 million USD of which in damages to AIG and 120 million USD in fees to the banks involved.

Your rating: None
Advertising Program          Terms of Service          Copyright          Useful links          Social networks          Credits