News reports released this yesterday and confirmed by Prudential this morning appear to show Tidjane Thiam, CEO of Prudential trying to renegotiate the AIG deal from $35.5 to $30bn.
The required lowering will come from AIG accepting a reduction of their state in the new AIA/Prudential below the previously agreed.
Currently the stake will be 12 percent unless a deal can be struck to reduce this, shareholders may vote against it.
"We note the recent press speculation regarding talks between Prudential and American International Group. We confirm that discussions regarding the current status of the transaction have taken place between Prudential and AIG and are continuing. These discussions may or may not lead to a change in the terms of the combination of AIA Group Limited and Prudential," the Pru's brief statement this morning said.