Now Pru sues AIG
It had to happen. British insurance giant Prudential has taken out a lawsuit against American International Group in their multi-billion dollar battle for American General.
Prudential alleges that AIG has “interfered illegally” by making a last-minute $46 billion bid.
“While AIG may have the right to make an offer, it does not have the right to interfere with the merger using illegal or improper means,” Prudential said in a statement. “It has done both.”
AIG may have interfered, but it has also offered about $4.6 billion more than Prudential. Not surprisingly, American General is keen to talk to its new suitor. Trouble is, it will have to pay back a $1.2 billion fee paid by Prudential if it reneges on its agreement to be taken over by the British company.