Britain s Prudential will buy American International Group s Asian life insurance arm for $35.5 billion in the insurance sector s biggest deal ever, helping the bailed-out US group repay a big chunk of its taxpayer debt. Britain s No. 1 insurer plans to pay $25 billion in cash and the rest in equity for the unit, American International Assurance. It said it would finance the purchase through a rights issue of $21 billion including costs and fees, a record for an acquisition-related cash call, and by raising $5 billion of debt. The acquisition of AIA, regarded as AIG s Asian crown jewel, increases Prudential s ...

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