AIG refuses to change conditions of AIA sale to Prudential

1st June 2010, Comments 0 comments

US insurer AIG said Tuesday it had refused to modify the conditions for the sale of its AIA Asian unit to British rival Prudential, which had asked for the price to be cut.

"After careful consideration, the company will adhere to the original terms of its previously announced agreement," American International Group said in a statement.

"The company will not consider revisions to those terms," it added.

Prudential said Tuesday it had asked AIG to cut its price for AIA from 35.5 billion dollars (28.9 billion euros) to 30.375 billion dollars.

The takeover would be the biggest-ever in the insurance sector, transforming Prudential into the world's top non-Chinese insurer by market capitalisation, ahead of major competitors Allianz and AXA.

© 2010 AFP

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