Prudential Fails to Buy AIA

Prudential PLC has failed to acquire AIG's Asian business after shareholders of the U.K. insurer found the price tag too low and AIG refused to renegotiate, say news reports.

 

The Straits Times says Prudentials's withdrawal from its US$35.5 billion AIA bid could pave the way for AIG to launch an initial public offering (IPO) for AIA.

 

Because of the failed deal, Prudential will have to pay about $660 million to cover costs such as a termination fee payable to AIG, aborted share sale, and advisory fees, says the Wall Street Journal.

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