British insurance giant Prudential has today said it has no plans for a renewed bid for AIA, the Asian arm of US company American International Group (AIG).
The statement came after media reports today suggested that a fresh takeover deal was in the pipeline.
Chad Tendler, Prudential’s Hong Kong-based spokesperson, told Reuters: “We remain highly committed to Asia through our current very successful business. We will not be resurrecting the AIA deal and any speculation is misguided and inaccurate.”
Last Wednesday, Prudential abandoned its $35.5 billion (£24.6 billion) takeover of AIA after the insurer had attempted to renegotiate the deal and offered a lower price tag of $30.375 billion, which AIA snubbed.
Several Prudential shareholders had already said they would not approve the takeover unless the Pru trimmed between $3 billion and $5 billion from the original price.
The failure of the deal has raised fears about the future of Prudential chairman, Harvey McGrath, and the insurer’s chief executive, Tidjane Thiam.
Following the collapse of the deal, Pru said it faced costs of £450 million ($653 million) relating to the withdrawal of the deal, which includes a break-up fee of £152.6 million.
The deal was set to provide the Pru with the opportunity to create South East Asia’s leading insurer.
However, today Prudential, which is Britain’s second largest insurer, said: “We remain highly committed to Asia through our current very successful business.”
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