British insurance giant Prudential has said the cost of its failed bid for AIA, the Asian arm of US company American International Group (AIG), is £377 million before tax relief.
However, it is less than originally thought. Following the collapse of the deal, Pru said it faced costs of £450 million relating to the withdrawal of the deal, which included a break-up fee of £152.6 million.
In early June, Prudential abandoned its $35.5 billion takeover of AIA after the insurer had attempted to renegotiate an earlier deal and offered a lower price tag of $30.375 billion, which AIA snubbed.
At the time, several Prudential shareholders said they would not approve the takeover unless the Pru trimmed between $3 billion and $5 billion from the original price.
The deal was set to provide the Pru with the opportunity to create South East Asia’s leading insurer.
Meanwhile, the cost of the failed bid comes as the Pru announced a 34% rise in first-half operating profit of £1.68 billion.
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