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Prudential Ends Plans To Buy AIG Asian Subsidiary

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Prudential Ends Plans To Buy AIG Asian Subsidiary

Business

Prudential Ends Plans To Buy AIG Asian Subsidiary

Prudential Ends Plans To Buy AIG Asian Subsidiary

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British insurance company Prudential is calling off plans to buy AIG's Asian subsidiary. AIG needed the sale to pay back some of the $180 billion it still owes American taxpayers. Merger talks hit the rocks after Prudential's shareholders balked at the $35 billion price. Prudential lowered its offer, AIG refused and the deal fell apart.

RENEE MONTAGNE, host:

NPR's business news starts with the collapse of an AIG deal.

(Soundbite of music)

MONTAGNE: The British insurance company Prudential is calling off plans to buy AIG's Asian subsidiary. AIG needed the sale to pay back some of the $180 billion it still owes American taxpayers. Merger talks hit the rocks after Prudential's shareholders balked at the $35 billion price. Prudential lowered its offer, AIG refused, and the deal fell apart.

AIG is reportedly considering a public stock offering to raise money from its Asian business.

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