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Prudential suspends Hong Kong shares to renegotiate AIA deal

Pressure as shareholders say the asking price is too high.

Prudential has said it is trying to renegotiate its $35bn bid for AIA because as it is under immense pressure from investors who claim the asking price is extraordinarily high.

In the wake of the issue, the British insurer also suspended trading of its shares which were listed in Hong Kong earlier this week.

Tidjane Thiam, Prudential's chief executive, is known to be in talks with AIG, trying to persuade it to lower its asking price to less than $30bn for its Asian arm.

Thiam's bid team may also try to talk AIG into settling for less than the latter's agreed 12 per cent share in the enlarged group.

"These discussions may or may not lead to a change in the terms of the combination of AIA and Prudential," said the Pru in a statement.
News of the renegotiation has seen Prudential's shares in the US surge nearly 10.5 per cent to $15.98.