In what may cast shadows of uncertainity over the future of Prudential CEO Tidjane Thiam, the American International Group has rejected Prudential’s bid to revise its earlier offer of $35.5billion to purchase AIG’s Asian life insurance unit.
The Prudential wanted to revisit the offer as its shareholders were opposing the huge price tag attached to the deal. The deal was being watched with close interest from several quarters as AIG hoped to use the proceeds of this deal with Prudential to begin repaying the $132billion it received as bailout from US Government Which currently owns close to 80% of AIG.
It is beleived that AIG is opposing a lower price because it fears that the Prudential shareholders might reject it again. If the deal does not go through, it would be a big blow to Mr. Thiam who took over Prudential an year ago. He has been severely criticized for attempting such a complex deal- The Asia insurance unit of AIG is bigger than Prudential in terms of market value.
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