AIG And Prudential Discuss Deal Restructuring (AIG, PRU)

American International Group AIG and Prudential Plc. PRU are mulling restructuring their $35.5 billion Asian Life Insurance unit deal. Reuters has reported that the negotiations are centered around the funding behind the deal. Other points of negotiation include cutting the $25 billion cash component, without altering the overall deal price. AIG (AIG) is likely to reduce the cash portion by $2 billion and replace it with a Prudential (PRU) loan. Alternatively, it may also accept hybrid securities of the same amount. AIG is expected to utilize the proceeds for repaying its loan from the U.S. government. The deal is very important for Prudential too. It may make or break its CEO Tidjane Thiam’s career, who agreed to pay big money to acquire a company larger than his own.