Prudential makes a big bet on Asia

One of the largest foreign acquisitions on record by a British firm was made this week as Prudential moved in on AIG's Asian unit - AIA.

In the sixth-largest foreign acquisition by a British firm on record, Britain's largest insurer, Prudential, has agreed to take over AIA, the Asian unit of the stricken US insurance giant AIG. The Pru will pay $35bn (£23bn) 50% more than its own market capitalisation. Of that sum, $15bn will be paid in shares and $25bn in cash. The latter comprises a $5bn debt issue and a $20bn (£13.5bn) rights issue, the largest ever seen in London.

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