Prudential delays rights issue
Thursday, 6 May 2010
LONDON, May 5 (AFP): British insurer Prudential Wednesday said it had decided to delay launching a rights issue aimed at helping to fund a 35.5-billion-dollar takeover of AIA, the Asian arm of troubled US insurer AIG.
Prudential, which had been expected to reveal details of its launch for a rights issue worth about 20 billion dollars Wednesday, said it had been forced into a delay as it was still in talks with British regulators.
The insurer added that it still expected to complete the sector's biggest-ever takeover during the third quarter in 2010.
"Prudential has decided to delay the pricing and launch of the rights issue whilst it seeks to bring its discussions with the FSA (Financial Services Authority) to a conclusion," the insurer said in a statement.
It added that discussions were ongoing "in particular in relation to the capital position of the enlarged group".
Prudential said it did not expect the delay "to affect the overall timing for the completion of the transaction set out on 1 March 2010.
Prudential, which had been expected to reveal details of its launch for a rights issue worth about 20 billion dollars Wednesday, said it had been forced into a delay as it was still in talks with British regulators.
The insurer added that it still expected to complete the sector's biggest-ever takeover during the third quarter in 2010.
"Prudential has decided to delay the pricing and launch of the rights issue whilst it seeks to bring its discussions with the FSA (Financial Services Authority) to a conclusion," the insurer said in a statement.
It added that discussions were ongoing "in particular in relation to the capital position of the enlarged group".
Prudential said it did not expect the delay "to affect the overall timing for the completion of the transaction set out on 1 March 2010.