Prudential Buy of AIG's Asian Unit Is Dead

The U.K.'s Prudential said Thursday the agreement to acquire AIG's Asian life insurance unit has been terminated.
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LONDON (

TheStreet

) -- The U.K.'s

Prudential

(PUK) - Get Report

said Thursday the agreement to acquire

AIG's

(AIG) - Get Report

Asian life insurance unit has been terminated.

Prudential a day earlier said it was in negotiations to end the deal to buy AIA for $35.5 billion.

The deal was pretty much dead when AIG earlier this week said it wouldn't negotiate a lower price for its Asian unit.

Bloomberg

reports that AIG bankers had estimated the Asian unit was worth between $32 billion and $36 billion following an initial public offering. The projections were delivered May 31 to AIG's board as it weighed Prudential's reduced bid of $30.4 billion for the business, people with knowledge of the figures said. AIG directors decided later that day to reject the offer,

Bloomberg

reports.

Prudential had faced strong resistance from shareholders who believed it was paying too much for AIA, and was uncertain whether it could win the required 75% backing from shareholders.

-- Reported by Joseph Woelfel in New York.

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