British insurer Prudential today said it had decided to delay launching a rights issue aimed at helping to fund a 35.5-billion-dollar takeover of AIA, the Asian arm of troubled US insurer AIG.
Prudential, which had been expected to reveal details of its launch for a rights issue worth about 20 billion dollars today, said it had been forced into a delay as it was still in talks with British regulators.
The insurer added that it still expected to complete the sector's biggest-ever takeover during the third quarter in 2010.
"Prudential has decided to delay the pricing and launch of the rights issue whilst it seeks to bring its discussions with the FSA (Financial Services Authority) to a conclusion," the insurer said in a statement.
"Prudential does not expect this to affect the overall timing for the completion of the transaction set out on 1st March 2010.
"Other regulatory and anti-trust approvals are progressing as planned and it is still anticipated that completion of the transaction will occur during the third quarter of 2010," it added.