Prudential bid for AIA 'cost £377m'

12 August 2010

Prudential's failed bid for AIG's Asian division AIA cost the British firm £377 million ($588 million), the company has revealed.

The figure is smaller than the initial estimate, which put the cost of the collapsed deal at £450 million, with the reduction attributed to currency fluctuations and lower advisory fees, reports Reuters.

It was revealed in Prudential's half year results, which saw the company report an operating profit of £1.67 billion.

Despite the failure of the AIA deal, chief executive Tidjane Thiam said the company will still be looking to invest in its Asian markets.

"Our Asian business gives us a material and powerful presence in the most attractive markets in our industry, and one that will continue to underpin growth," he said.

Earlier this year, Prudential scrapped its $35.5 billion bid for AIA after shareholders questioned the plans and AIG refused to accept a lower price for the unit.

By Asim Shah

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