New Suitors for AIG's Major Asian Arm?

US insurance giant AIG has agreed to sell its Asian arm, AIA, to British insurer Prudential for around 35 billion dollars (26 billion euros, 23 billion pounds), a source close to the deal said.American International Group (AIG), which received a huge taxpayer bailout to stave off collapse during the financial crisis, had been persuaded to let Prudential take over its Asian businesses, said the source late Sunday.The deal will transform Prudential into the world's top non-Chinese insurer by market capitalisation, ahead of major competitors Allianz and AXA.

US insurance giant AIG has agreed to sell its Asian arm, AIA, to British insurer Prudential for around 35 billion dollars (26 billion euros, 23 billion pounds), a source close to the deal said.American International Group (AIG), which received a huge taxpayer bailout to stave off collapse during the financial crisis, had been persuaded to let Prudential buy its Asian businesses, said the source late Sunday.The deal will transform Prudential into the world's top non-Chinese insurer by market capitalisation, ahead of major competitors Allianz and Axa.

Prudential chairman Harvey McGrath Tuesday defended a planned takeover of Asian insurer AIA as the British company's shares started trading in Hong Kong and Singapore to help fund the mega-deal.Prudential, which is keeping its primary listing in London, is hoping to woo Asian investors ahead of its planned 21-billion-US-dollar rights issue to buy the Asian arm of troubled US insurer American International Group (AIG).

British insurer Prudential on Monday said it had agreed to purchase AIA, the Asian arm of US insurance giant AIG, in a cash and shares deal worth 35.5 billion dollars (26 billion euros)."Prudential plc has reached agreement with American International Group Inc. (AIG) on terms for the combination of Prudential and AIA Group Limited, a wholly-owned subsidiary of AIG," Prudential said in a statement."AIG will receive total consideration of 35.5 billion dollars, comprising 25.0 billion dollars in cash and 10.5 billion dollars in New Prudential Shares and other securities."

British insurer Prudential has begun talks to lower its $35.5 billion offer for AIG's Asian life insurance arm amid reports shareholders will not back a deal they consider too costly.

British insurer Prudential said Monday it was in "advanced" talks to purchase AIA, the Asian arm of US insurance giant AIG, in a deal that would create the biggest insurer in southeast Asia."The board of Prudential plc notes the recent press speculation regarding a possible transaction involving AIA Group Limited," the London-listed group said in an official statement."Prudential confirms that it is in advanced discussions with AIG Inc. regarding a possible combination of its business with that of AIA."