Prudential has called for a lower price after shareholders complained that the treatment was too expensive. Prudential shareholders are set to vote on the agreement on 7 June. 75% Shareholder approval is required.
Two months ago, A.I.G. had said the sale of the unit, known as American international warranty or A.I.A., was a big step backwards paying her rescue of several federal dollars. If the operation fails, it will most likely become a fallback plan to celebrate a first public offering of A.I.A. in Hong Kong, said these people.
Both parties still have to compromise on a new price, although Prudential is likely looking for a price of less than $ 30 million, these people said.
It was not clear whether the Department of Treasury, major shareholder of A.I.G. with a game of 79.9%, would support a sale for less than 32 million dollars.
A.I.G. expected to hold a meeting of the Board in the coming days to consider their options, one of those people said.
A.I.G. spokespersons refused to comment on.
In a statement submitted with the Hong Kong stock exchange on Friday, Prudential said, "confirm us that the debate on the current status of the transaction has taken place between Prudential and A.I.G. and continues." These discussions may or may not lead to a change in the terms of the combination of A.I.A. Group Limited and
"Reasonable."
The stakes are high for Prudential and A.I.G. The British company, which is unrelated to the United States - financial Prudential has bet its future on the purchase of A.I.A. says that the operation would transform and significantly expand its presence in Asia, creating a beast of insurance in that continent.
Largest contributors deal include Robert H. Benmosche, Executive Director of the A.I.G., who pushed for the sale of A.I.A. in spite of the reluctance of some directors.
Several of the main shareholders Prudential have protested that the purchase price is too high, especially since the company plans to sell new shares $ 21 million to help finance the deal. Tidjane Thiam, seven months, Prudential Chief Ejecutivo has faced heavy criticism for treating such an ambitious agreement with relatively little experience.
Prudential said A.I.G. who currently do not anticipate winning enough shareholders, one of those people said.
Tuesday one large proxy RiskMetrics, advice companies urged investors to vote against the transaction. But another, glass, Lewis & Company recommended on Thursday that the shareholders approved the agreement.
An initial public offering of A.I.A., that would be an alternative to sale to Prudential, carries risks as well. Analysts have said that it may be difficult to organize an important offer if persists the recent market volatility.
But Treasury officials are encouraged by recent improvements in Citigroup and the Government recently sold 20 percent of their participation in the Bank for a profit.
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