Prudential Calls Off $35B Deal For AIG's Asia Unit

Law360, New York (June 2, 2010, 10:45 AM EDT) -- British insurer Prudential PLC on Wednesday pulled the plug on its bid to purchase American International Group Inc.'s Asian life insurance unit, just a day after AIG rejected Prudential's request to lower the asking price by approximately $5 billion.

Prudential CEO Harvey McGrath said his company was in negotiations with AIG to cancel its acquisition of AIA Group Ltd., saying that the deal became unworkable after AIG refused to lower the $35 billion price tag the companies agreed to in March.

Though he called AIA an...
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