Prudential Delays $21B Offering Linked To AIA Deal

Law360, New York (May 5, 2010, 4:26 PM EDT) -- British insurer Prudential PLC on Wednesday reportedly delayed the launch of a $21 billion rights issue meant to fund the purchase of American International Group Inc.'s Asian life insurance unit, throwing the approximately $36 billion deal for AIA Group Ltd. into doubt.

Prudential put a hold on the rights offering after Britain's securities regulator, the Financial Services Authority, raised concerns about the capital position of the combined insurer, Reuters reported Wednesday.

Prudential and AIG announced a $35 billion deal for AIA on March 1.

Prudential could...
To view the full article, register now.