Prudential to outline Asia asset sales: source

May 15, 2010 - 0:0

HONG KONG (Reuters) -– Britain's Prudential Plc is expected to outline divestments of some Asian assets in its upcoming rights offering prospectus in an effort to appease shareholder concerns about its planned AIA acquisition, a source familiar with the process told Reuters on Friday.

Prudential's audacious $35.5 billion takeover of American International Group Inc's Asian life insurance business hit a regulatory snag last week and delayed the release of the prospectus for the $21 billion rights issue to part fund the deal.
Reuters reported in March that Prudential was expected to exit some Asian markets after the completion of the American International Assurance (AIA) buy, to focus on key markets and raise at least $1 billion.
“For most countries in Asia they have still not reached a conclusion for integration plans. For some, they will probably announce on the day the prospectus is out,” the source said.
The decision to exit certain markets is driven by strategic business needs rather than aimed at raising money to fund the AIA purchase, the source said.