Pru in talks on AIG's Asian interests

Mar 1 2010 By nebusiness

Insurance giant Prudential confirmed today that it was working on a deal to buy the Asian arm of embattled US group AIG.

Pru is understood to be planning a record investor cash-call of up to £15bn to finance the takeover, said to be worth a mammoth US$30bn (£19.8bn).

The life and pensions firm said it was in "advanced talks" and has asked for its shares to be suspended ahead of an expected takeover announcement.

Pru already has a significant presence across Asia, but the deal will transform it into the largest insurer in the region.

Reports suggested Pru may look to sell its British arm after the acquisition, but the widely touted suitor for its domestic business - Friends Provident owner Resolution - said today that it was not in talks with Pru.