American General Board Meets to Consider AIG, Prudential Bids

April 9, 2001

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.

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