Prudential nemesis Robin Geffen says it is "inconceivable" the insurer can push on with its plan to acquire AIA after failing to lower the price of the deal.
Pru's proposed deal to acquire AIA appears doomed today 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. Pru is now highly unlikely to achieve shareholder approval for the deal. The board of Prudential says it is now considering its position.
Geffen, who began the Prudential Action Group in a bid to scupper the deal, had previously stated a cut-price offer of $30bn still may not be good enough to get the green light from shareholders.
"We currently have no comment and are awaiting the Pru's statement on what they intend to do next, which we expect very shortly," he says.
"Cleary the attempt to reduce the price has not worked and it would appear inconceivable that they can push on with this rights issue to buy assets at a price that they themselves now admit is far too high."
Pru investors are due to vote on the original deal on 7 June.
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