Pru looks to sell AIA assets to raise $1bn

By Philip Aldrick, Banking Editor Published: 7:32PM GMT 05 March 2010

Prudential

The British insurer"s shares have been beaten given the proclamation at the begin of the week . Despite recuperating 7 to 520p on Friday, the batch is down 13.5pc.

Sources pronounced the insurer is deliberation offered AIA"s Australia, New Zealand, South Korea and Taiwan businesses to concentration on key markets. The Prudential discharged the speak as "speculation".

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Sales would lift about $1bn, assisting compensate down the $5bn debt taken on to monetary the deal. Shareholders have additionally been asked to branch up $21bn in the UK"s largest-ever rights issue to account the merger and are seeking for justification to clear the price.

Demonstrating mending certainty in the deal, GIC, Singapore"s emperor resources fund, and Qatar Holding have assimilated the underwriting associate . Norges Bank, Prudential"s fourth-biggest shareholder, additionally indicated it would behind a rights issue, saying: "We still obviously think there is a copiousness of long-term worth in Prudential at this stage."

Separately, Ping An, the hulk Chinese insurer, ruled out a counter-bid, saying: "Purely from the monetary perspective, we can means [it], but we are not deliberation it."