Sunday, February 28, 2010
DAY OF THE JACKALS
American International Assurance, the Asian unit in the Pru’s sights, is in advanced planning for a Hong Kong initial public offering expected to raise up to $20bn. However, that may be scrapped in favour of an outright sale to the UK-based insurer.
The IPO would generate hundreds of millions of dollars of fees and rabid global investment banks had fought ferociously to win the mandate.
Earlier this year, seven other banks were named in the lesser role of book-runners to the listing.
They included the rogues gallery of UBS, Goldman Sachs, Bank of America, Merrill Lynch, Citigroup and Credit Suisse.
The absence of JPMorgan, the only major global bank not on the list, sparked rumours that the bank had fallen out with AIG and that the insurer had taken its revenge by excluding it.
However, JPMorgan appears to have wanted to keep its powder dry and instead, it is advising and financing Prudential’s bid for AIA. If this deal goes through, justice will be served, at least as between JPM and Goldman Squid.
WB7--Take your prey and tear it to pieces the Wall Street way.
REUTERS UPDATE-- American International Group Inc's (AIG.N) board approved the sale of its Asian life insurance business to Britain's Prudential Plc (PRU.L) for $35.5 billion, a source familiar with the matter said on Sunday.