Unstructured Finance

Clock ticks as AIG ponders AIA’s prospects

June 4, 2010

American International Group CEO Robert Benmosche asked the insurer’s board for time to explore options besides a public offering for its Asian life unit after a $35.5 billion deal to sell it to Prudential fell apart, a source familiar with the matter tells Paritosh Bansal.

AIG won’t haggle?!

June 1, 2010

With an outstanding IOU to Uncle Sam of more than $50 billion, AIG hardly seems to be in a position to turn up its nose at a lower bid for AIA from Britain’s Prudential. The message was pretty clear to Pru’s CEO Tidjane Thiam that his shareholders were in little mood to approve a $21 billion rights issue to fund a $35 billion purchase of AIG’s Asian assets. So he came back with a $30 billion offer. No surprises there. He’d be mad not to haggle, particularly given it looks like Pru is the only buyer out there.

Pru gets an earful over AIA deal

May 26, 2010

RiskMetrics has weighed in against Pru buying AIG’s AIA Asian assets, saying $35.5 billion is too much. The risk advisory firm joins a chorus of analysts chirping away from Singapore to London about problems with a deal that would pay off a huge chunk of AIG’s debt to Uncle Sam while transforming Pru into an Asian powerhouse.

Pru looks to appease shareholders

May 14, 2010

IAAPrudential’s strategy to appease shareholders: It will spit out what it can’t chew as it swallows a business bigger than itself.