Regulators agree to fast track Pru's AIA bid

ASIAN regulators have agreed to fast track Prudential's £23 billion takeover bid for AIA, AIG's Asian Unit, according to the British insurer's chairman, Harvey McGrath.

McGrath hopes assurances from regulators in countries including Singapore and Hong Kong will persuade major shareholders ahead of a meeting with Prudential management this week.

Some shareholders are thought to be nervous that regulators could attempt to derail the potentially transformational deal.

"We have already built up strong relationships with the regulators," McGrath told a Sunday newspaper. "The deal has also been speeded up by the planned float in Hong Kong of AIA."

Prudential is this week expected to secure a dual listing of its shares in Hong Kong as well as on the London Stock Exchange.

Shares in Prudential dropped sharply after it announced the deal last week as it will require a record 14bn rights issue.

However, its shares closed up 7p on Friday at 520p.