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Prudential Financial Plans to Sell $1B of Shares for Planned Purchase of AIG Units

Source: Dow Jones

Posted on 12 Nov 2010

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Prudential Financial Inc. said it plans to sell $1 billion of shares to raise funds for part of its planned $4.8 billion purchase price for two life insurance units from American International Group Inc. (AIG).

The insurer, which has a market capitalization of about $26 billion, in September said it agreed to buy AIG Star Life Insurance Co. and AIG Edison Life Insurance Co., in part with a $1.3 billion stock sale and $1.2 billion in senior notes, to expand its presence in Japan.

The deal is expected to add 40 cents a share to Prudential's earnings--a calculation that includes the planned share sale, among other factors.