UK Insurer Prudential Abandons Plans To Buy AIA

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UK insurer Prudential has scrapped plans to buy AIA, the Asian business of US insurer AIG.

The deal collapsed after Prudential failed to negotiate a lower price for AIA.

In March, Prudential agreed to buy AIA for $35.5bn (£24.6bn), but last week asked for the price to be cut to nearer $30bn after shareholder opposition.

AIG said on Tuesday that it would not "not consider" any revision to the terms of the deal.

The Prudential said it faced £450m ($653m) in costs related to the deal, including a break fee of about £152m.

The company's shares were 3.3% lower in early morning London trading at 556.5p. - BBC