The Banking and Strategy Initiative

Chillin' out till it needs to be funded

This new story of breaking up Goliath | Advantage zyaada

And here’s Prudential ready to break up into pieces for buying AIA. I am not so sure we are achieving anything out of this $35 b purchase but domestic monopoly rules would be tougher in each country esp in insurance, much like banking.

Britain’sPrudential Plc is expected to outline divestments of some Asian assets in its upcoming rights offering prospectus in an effort to appease shareholder concerns about its planned AIA acquisition, a source familiar with the process told Reuters on Friday.

Prudential’s audacious $35.5 billion takeover of American International Group Inc’s Asian life insurance business hit a regulatory snag last week and delayed the release of the prospectus for the $21 billion rights issue to part fund the deal.

Reuters reported in March that Prudential was expected to exit some Asian markets after the completion of the American International Assurance (AIA) buy, to focus on key markets and raise at least $1 billion.

“For most countries in Asia they have still not reached a conclusion for integration plans. For some, they will probably announce on the day the prospectus is out,” the source said.

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This entry was posted on May 17, 2010 by in Banking, Financial Markets, Financial Services, Retail Lifestyle, Uncategorized and tagged , , , .

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