Regulator talks delay Prudential Plc issue

LONDON, May 5 (UPI) -- British insurance giant Prudential PLC said Wednesday it would delay issuing terms of a share issue until it resolved some issues with regulators.

"Up until 7 o'clock this morning, people were expecting the rights news to hit the market," Paul Mumford, a fund manager at Cavendish Asset Management, told The New York Times. "It's all a bit of a mess, and embarrassing for the Pru," he said.

The firm was expected to release the terms on a sale expected to raise $21 billion to help finance its purchase of American International Group's Asian life insurance business, a $35.5 billion takeover.

However, the firm is negotiating with the Financial Services Authority over the capital position of the combined company, the Times said.

Hugh McGrath, chairman of Prudential, said in a statement, "We are entirely committed to the transaction and remain on track to complete within the timing set out on 1 March."

But Mumford said, "The whole thing's very unusual."

"It underlines the criticisms people have been making: that it's rather large to digest and relatively expensive," he said.