Chillin' out till it needs to be funded
holy bejeezes, after the clean up in trillions, this financial services advisor thinks he has a contingency reserve in hold your breath – A $1 billion spillover..
NYT.. as well as access to an additional 1 billion pounds for stress contingencies…
In the same statement, Prudential detailed the terms of its takeover of A.I.G.’s Asian unit, AIA, saying the deal had a notional value of $35 billion, of which $25 billion is still in cash, despite reports circulating that Prudential had negotiated a smaller cash payment.
The rest is $5.5 billion in new Prudential shares, $3 billion in convertible notes and $2 billion in tier 1 notes.
“Through capital management and portfolio rationalization, there will be opportunities for the combined entity to create additional shareholder value over and beyond the revenue and cost synergies identified,” Tidjane Thiam, the Prudential chief executive, said.