Prudential and AIG are once again starting talks for restructuring the $35.5bn sale of AIA, the Asian unit of the US group. The move is widely seen as a measure to persuade the regulators to okay the deal.
Sources close to the deal have agreed that Prudential had recently approached AIG to renegotiate the terms of a deal signed in the month of March. It is being done to alleviate the concerns of UK Financial Services Authority over its capital position. The board of AIG has still not made a final decision for the deal. Insiders agreed that AIG was looking closely and may be close to signing the deal in the coming days.
If the new terms are accepted, US Government which holds 80% in AIG will receive around $2bn less than the planned $25bn as per the earlier plan. All the stakeholders refused to comment anything on the deal.
Analysts felt that the matter is still under consideration of all the concerned parties and it is mainly focused on $5bn debt that Prudential had planned to raise for purchasing AIA.
Most of the shareholders are already doubtful if the deal will go through. Many have already questioned the relevance of the deal and feel that a deal will not be in the long term interests of Prudential group.