LONDON: UK regulators have agreed in principle to Prudential Plc’s US$35.5bil purchase of AIG’s Asian life insurance unit, sources said, and the British insurer hopes to price its bumper rights issue within days.
The UK’s largest insurer was thrown off its schedule to buy American International Assurance (AIA) last week, when the Financial Services Authority (FSA) blocked the deal in the last minute on concerns over Prudential’s capital base.
The FSA had yet to give its final approval and bankers in late-night talks were ironing out the last wrinkles between the two companies.
But the watchdog had agreed in principle after financial terms had been tweaked, the sources said, resulting in a smaller cash component for AIG, but not a lower overall price.
“The FSA has signed off on the plan. We could price the rights issue very soon,” a source said. – Reuters
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