US authorities concerned about AIG deal
It has been revealed that the US government, which effectively took over control of AIG after the company nearly collapsed, has been working on secret plans to hive off the company's Asian operations amid concerns that the acquisition by Prudential could falter. US authorities have been in talks with investors in the Far East about a potential sale of the Asian operation with the company desperate to raise cash to pay back the US taxpayer.
This revelation will place more pressure upon the management of Prudential as we enter a make or break situation regarding the proposed acquisition. This is just the latest in a long line of problems that the Prudential management have had to take on board with regards to an acquisition which could change the company's future. The proposed acquisition is literally in the balance this weekend because while the UK company has a watertight option there are still many different hurdles to navigate.
Even though the Prudential management have overcome many issues along the way ultimately it may be the state of worldwide stock markets which will finally make a break the deal. If investor appetite for the rights issue diminishes in the days and weeks ahead this would be a very damaging blow.
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