of the U.K. confirmed Friday that it is holding discussions with
about the terms of its $35.5 billion acquisition of AIG's Asian unit AIA.
"We confirm that discussions regarding the current status of the transaction have taken place between Prudential and AIG and are continuing. These discussions may or may not lead to a change in the terms of the combination of AIA Group Limited and Prudential," the company said in a statement to the London Stock Exchange.
The price of the deal has been opposed by some shareholders; a number of analysts believe the price Prudential agreed to pay is too high.
Opponents of the deal have formed the Prudential Action Group, which is seeking to muster support for a vote of no confidence in Prudential's CEO Tidjane Thiam. The Action Group claims that at least 15% of shareholders intend to vote against the deal.
Prudential announced a rights issue to raise $20.9 billion to help finance the deal. The company also plans $5.4 billion in hybrid debt financing.
AIG, which received more than $180 billion in aid from the U.S. government during the financial crisis, hoped to raise a total $51 billion from the Prudential deal and the sale of its American Life Insurance Co. division to
-- Reported by Joseph Woelfel in New York.
Follow TheStreet.com on
and become a fan on
Copyright 2010 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.