AIG will not access the request of Prudential. While the British insurer claimed a decrease of 10% of the purchase price under pressure from its shareholders, AIG said Tuesday in a statement it will not alter the terms of the proposed sale of its Asian subsidiary AIA UK Prudential, whose price is set at 35.5 billion dollars (nearly 29 billion euros).
Prudential acknowledges and will respond "in due course"
In another statement, Prudential said take note of the decision of AIG and said he will make a statement in "due course". He confirmed that he proposed a reduction in price and said that his new proposal is 30.38 billion dollars (24.7 billion euros).This represents a decrease of 14.4% of the purchase price, not 10% as first announced by the prospective acquirer.
To partially finance this acquisition, Prudential would need a capital increase of 21 billion dollars (about 17 billion dollars). What worried shareholders, who must decide on the draft on June 7
Prudential and AIG have resumed negotiations last week to save this agreement, several shareholders of the British insurer has estimated that the price offered to become the dominant player in Asia's life insurance was too high.
After this new twist, we expect that the shareholders of Prudential eagerly await the response that Prudential will this announcement.Prudential Will he finally pay $ 35.5 billion and will reach there to give AIG? Unless the proposed acquisition would not be abandoned.
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