Pru delays cash call prospectus

5th May 2010 07:53

Insurer Prudential has had to postpone publication of its prospectus detailing the terms of its $20bn rights issue to fund the $35.5bn acquisition of AIG's Asian (AIA) businesses. The UK firm was due to release its timetable today, but it's still in discussions with the City regulator about the takeover, especially the capital position of the enlarged group under the Insurance Groups Directive (IGD)."As a result, Prudential has decided to delay the pricing and launch of the rights issue whilst it seeks to bring its discussions with the FSA to a conclusion," it said Wednesday.It now expects to price and launch the record cash call, and publish the rights issue prospectus once talks with the Financial Services Authority (FSA) are over. The first quarter trading update will be published at the same time.Pru maintained that completion of the deal is still on course for the third quarter of 2010, and said other regulatory and anti-trust approvals are progressing as planned."The work completed since 1 March with the AIA and Prudential teams has convinced me more than ever that the enlarged group will be in a position to capture sustainable and highly profitable growth and will deliver substantial long term value for our shareholders," said chairman Harvey McGrath.