AIA Deal Size May Be Slashed (PRU, AIG)

Prudential PUK is in talks with American International Group AIG to buy its Asian insurance business AIA. However, the Wall Street Journal has reported that Prudenital (PUK) and AIG (AIG) are now looking to lower the $35.5 billion price tag of the deal, so as to make it more palatable to the shareholders of both companies. Prudential’s Chief Executive Officer Tidjane Thiam is in a particularly tight spot, as his firm is trying to acquire a company twice its size. Reuters has reported that Prudential has just over a week to persuade its shareholders to accept the deal. However, some of its shareholders are quite vocal in their opposition.