Wednesday, June 02, 2010

Prudential fails in bid to buy Asian insurer AIA

LONDON (AFP) - – British insurer Prudential's attempt to buy the Asian unit of US group AIG has ended in failure, the BBC reported on Tuesday.

The deal collapsed after Prudential failed to negotiate a lower price for AIA, the BBC said.

Prudential had asked AIG (American International Group) to cut its asking price of 35.5 billion dollars (29 billion euros) to nearer 30 billion dollars, following a revolt by the British company's shareholders.

But AIG said that "after careful consideration, the company will adhere to the original terms of its previously announced agreement."

"The company will not consider revisions to those terms," it added.

If the collapse of the deal is confirmed, it would pile fresh pressure on Prudential's chief executive Tidjane Thiam, who wants to transform the 162-year-old British company into an international insurance powerhouse.

The takeover would have been the biggest ever in the insurance sector, transforming Prudential into the world's top non-Chinese insurer by market capitalisation, ahead of major competitors Allianz and AXA.

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