American General’s board of directors is scheduled to meet today to consider the relative merits of the two competing offers for the company made by Britain’s Prudential Plc and more recently by American International Group. Although it accepted Pru’s proposal last month, the AIG bid now appears more attractive, as the value of Prudential’s shares, which would be exchanged for Am Gen shares, has dropped considerably since the announcement.
Most analysts expect the board to accept AIG’s offer. This would trigger a round of negotiations, during which AIG has said it would perform the necessary due diligence examination of Am Gen’s finances, and most likely open talks with Prudential, who stands to collect a $600 million break up fee if its bid is rejected.
Was this article valuable?
Here are more articles you may enjoy.
PE-Backed Insurance Broker Hub International Files Confidentially for US IPO 
New Jersey Busts Alleged $8 Million Auto Theft Operation Involving 63 People 
Agent-Carrier Relationships Improving, Survey Shows 
Clash of Florida Titans Pits Powerful Tribe Against Homebuilder Lennar 
