Prudential in $28bn AIG bid
From correspondents in London - AFP
BRITISH insurer Prudential is in talks to buy AIA, the Asian arm of US giant AIG, for $US25 billion ($A28.14 billion).
Prudential is in talks about a takeover that would be one of the biggest-ever foreign acquisitions made by a British company”, Sky News channel said.
The insurer has been examining a range of options for the deal which could cost it about $US25 billion ($A28.14 billion), the report said.
It said the Prudential’s preferred option is a share placing worth about $US23 billion ($A25.89 billion), which would make it one of the biggest fundraisings ever by a British company.
Talks have already begun with existing Prudential shareholders, the report added.
A Prudential spokesman declined to comment when contacted by AFP.
US insurance giant AIG reported on Friday a fourth quarter net loss of $US8.9 billion ($A10.02 billion), better than the worst of market fears, as it strove to repay a multi-billion dollar taxpayer bailout.
AIG said the loss stemmed mainly from charges tied to paying down its debt from the bailout, that eventually ran into a staggering $US180 billion ($A202.61 billion), and boosting commercial insurance reserves.
