UK insurer Prudential on Thursday confirmed its agreement to buy American International Group’s (AIG.N) Asia life insurance unit had been terminated and said it would pay AIG a termination fee of 152.6 million pounds ($314.1 million).

Prudential (PRU.L) (2378.HK) (PRTL.SI) said in a filing to Hong Kong stock exchange that it would not proceed with the rights issue or other financing related to the deal, and would not bring any resolutions to court or shareholder meetings. It added an annual general meeting would go ahead as planned June 7. 

 

“Prudential and AIG have agreed to release and waive any claims each may have against the other,” the UK insurer said in the statement. 

 

Prudential abandoned its plan to buy AIG's Asian life unit for US$35.5 billion ($49.8 billion), leaving management under fire and the company facing a US$659 million bill for failure. The move was widely expected after bailed-out U.S. giant American International Group (AIG.N) refused to cut the price, turning down a last-ditch effort by Britain's largest insurer to appease shareholder concerns.

 

Prudential CEO Tidjane Thiam, in the top job for less than a year, is facing investor speculation about how long he can remain. But AIG Chief Executive Robert Benmosche, also in charge less than a year, looks set to survive unscathed.