Prudential Backpedals on AIG Deal

The consummation of the proposed $35 billion acquisition of AIA Group Limited by U.K.-based Prudential plc is coming into question.

On Friday, Prudential issued a statement acknowledging that it was seeking to alter the terms of the deal, first announced in March.

“We confirm that discussions regarding the current status of the transaction have taken place between Prudential and AIG and are continuing,” the statement read. “These discussions may or may not lead to a change in the terms of the combination of AIA Group Limited and Prudential.”

The parent company of AIA Group Limited, New York-based American International Group, issued it’s own statement Monday, claiming the deal was still on for the price agreed upon in March.

“After careful consideration, the company will adhere to the original terms of its previously announced agreement with Prudential plc for Prudential to acquire AIG's wholly owned pan-Asian life insurance subsidiary AIA Group Limited,” the statement read. “The company will not consider revisions to those terms.”

AIG has sought to divest business units order to pay payback bailout funds to the U.S. Treasury.