News: BCSC Approve Cancellation of Acquisition of Prudential Against AIA

By        : Suhendra

Jakarta - The Business Competition Supervisory Commission (BCSC) has received official notification of the cancellation of the related acquisition of Prudential's plans against American International Assurance (AIA), which has been canceled. Thus all the notification process of the AIA Prudential action plan has been terminated by CBSC.

"On June 4 there was a letter from legal counsel (Prudential), which revoked the notification was canceled because of its global acquisitions. The assessment itself suspended," said Head of Public Relations CBSC Junaidi Ahmad when contacted detikFinance, Tuesday (08/06/2010).

Junaidi explained before Prudential has reported its acquisition plans (notification) to CBSC against AIA on March 31, 2010. CBSC itself, continued Junaidi, has conducted initial pemeriksana including the examination of documents and conduct a thorough assessment of corporate action plan that eventually fell through.

As is known British insurer Prudential to cancel its intention to acquire a subsidiary of American International Group (AIG) is the AIA.

This acquisition plan foundered after AIG Prudential refused requests to lower the acquisition price of U.S. $ 35.5 billion (29 billion euros) to U.S. $ 30 billion, due to requests from shareholders.

In a statement, Prudential said the acquisition bid will be canceled, and Prudential will pay a cancellation fee of more than 152 million pundsterling plus legal fees amounting to 81 million pounds.

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