Prudential HK shares close higher after AIG talks confirmed

28th May 2010, Comments 0 comments

Prudential shares in Hong Kong closed up 4.2 percent Friday after the British insurance giant confirmed it was in talks with American International Group over the takeover of its US rival's Asian arm AIA.

Trading of Prudential shares -- which were floated in Hong Kong and Singapore this week -- was temporarily halted Friday after reports that it was trying to reduce the 35.5 billion dollar pricetag to win over investors.

The monster deal has attracted controversy, with some institutional investors warning they will try to block it.

Prudential shares closed up 4.2 percent at 61.50 Hong Kong dollars (7.90 US dollars) on Friday, above their 59.70 Hong Kong dollar price when they listed on Tuesday.

Prudential listed its shares in Asia to woo investors ahead of a 21-billion-US-dollar rights issue to help fund the AIA takeover.

The listings in Hong Kong and Singapore were done by way of introduction, meaning that the company added new trading venues without issuing new shares.

© 2010 AFP

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