Prudential battles to save AIG acquisition
The Prudential group is tonight battling to save the acquisition of AIG's Asian operation in a deal which could be worth $35.5 billion. The company is facing an ever increasing uphill battle with shareholders concerned the price is too high and the $21 billion rights issue to accompanying acquisition has been impacted by market conditions. So will the Prudential be able to save the deal?
There are serious concerns this evening that unless AIG and the Prudential can come to some kind of arrangement on a reduced price the acquisition may well fall by the wayside. It would appear, unofficially, that AIG is willing to discuss a reduced price for the acquisition but whether a deal can be announced in time and to suit both parties remains to be seen.
Many believe that the $21 billion rights issue is the key to the acquisition and as markets continue to remain volatile it is not 100% certain that the rights issue will proceed. All of this has added to the uncertainty surrounding the Prudential share price and the possibility that, if the acquisition fails, the company itself could become a target for predators. It would seem that the proposed acquisition of AIG has opened something of a "can of worms" for Prudential's management.
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