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Prudential under pressure over AIA deal

03 March 2010

Prudential has lost around one fifth of its market value since it announced plans to acquire American International Group’s (AIG) Asian life insurance subsidiary, American International Assurance (AIA).

Read more: Prudential American International Group American International Assurance AIA AIG rights issue share price

Prudential has lost around one fifth of its market value since it announced plans to acquire American International Group’s (AIG) Asian life insurance subsidiary, American International Assurance (AIA).

Shares in the UK’s largest insurer have tumbled by 19% in the two days since it announced the acquisition – falling by 56.8 pence on March 2 – amid concerns about how Prudential will fund the $35.5bn deal – the largest ever insurance acquisition.

Prudential is set to launch a record breaking £14bn ($21bn) rights issue to fund the deal, which will more than...


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If last year was the year of the cat, then this year could be the year of the debt crisis.

Mike Van Slooten, head of international market analysis at Aon Benfield