Business

Price Negotiations Stall Prudential-AIG Deal

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The U.S. insurance giant AIG is still trying to sell its Asian life insurance unit. AIG says the sale would be a major step toward paying back the federal government for at least part of the huge bailout it received. The British financial services company Prudential had agreed to a $35 billion deal but was forced back to negotiations after investors balked at the price tag.

RENEE MONTAGNE, host:

NPR's business news starts with AIG's race against time.

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MONTAGNE: The big U.S. insurance company is still trying to sell its life insurance unit in Asia. AIG says the sale would be a major step toward paying back the federal government for at least part of the billions in bailout money it received. The British financial services company Prudential had agreed to a $35 billion deal. Prudential was forced back to negotiations after its investors balked at the price tag.

Talks of lowering the price to $30 billion began last week. Reports have surfaced that Prudential investors still aren't satisfied with the lower price. The two companies are racing to beat a June 7th deadline, when Prudential investors are due to vote on a deal.

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