UK insurance giant Prudential Plc has denied reports that the company was planning to renew its bid to acquire the main Asian unit of American International Group Inc.
Notably, Prudential cancelled the pact to acquire AIA for $35.5 billion on June 3 after AIG directors rejected its last-minute bid to lower the buyout price to $30.4 billion to appease investors. And in case the takeover had been through, it would have become Prudential’s largest acquisition in its 162-year history.
Responding to a report published London’s Sunday Times newspaper that Chief Executive Officer Tidjane Thiam was mulling another attempt at buying AIA Group Ltd, Prudential Plc, in an email today, said the company was committed to the region through its existing “very successful business”.
The company will not be resurrecting the AIA deal and any speculation is misguided and inaccurate, Prudential said in the statement today.
Thiam and Chairman Harvey McGrath, it has been learnt, stepped down from the deal following pressure from some shareholders as the failed deal cost the company about 450 million pounds ($650 million) in fees.
“Had he (Thiam) stuck to his guns and got the deal done, he would have been given time to make it work”, Ben Collett, head of equities at broker Louis Capital Markets (Hong Kong) Ltd., said.
Trying to renegotiate was admitting the price was too high to the shareholders, he opined.