'AIG, Pru in talks to restructure AIA deal'

AIG is in talks with Prudential to restructure a $35.5 billion deal to sell its Asian life insurance unit to the British insurer, sources familiar with the matter said on Tuesday. Deals The negotiations, centered on the funding behind the deal, include cutting the $25 billion cash component but would not alter the overall price, the sources said. American International Group Inc may agree to reduce the cash component by $2 billion and instead subscribe to a Prudential loan or hybrid securities of that amount, one of the sources said. The stakes are high. Prudential is facing an uphill struggle ...

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