(Update) Prudential's proposed deal to acquire AIA appears doomed after AIG refused its revised offer of $30.375bn.
After days of last-minute negotiations to lower the price, AIA owner AIG this morning announced it will not alter the terms of the original $35.5bn deal.
"The company will not consider revisions to those terms," the AIG statement reads.
Pru is now highly unlikely to achieve shareholder approval for the deal. The board of Prudential says it is now considering its position.
Neptune's Robin Geffen, who led the fight against the proposed AIA purchase, believed a cut price offer of $30bn may have not even been enough to get the green light from shareholders, the Telegraph reports.
"At that price, the execution risk is still there and it is very high," Geffen says.
Pru's investors are due to vote on the original deal on 7 June.
In early trading, Pru's share price is up 3.51% to 560.50p as investors digest today's announcement.
Odds widened to 2/1
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