Prudential PLC has informed that it has decided to cut the cost of the AIG takeover bid. However the firm bid for the takeover of AIG Inc.'s Asian unit has been failed.

The firm has posted a very strong half-year profit which is considered to be the reason behind such move. Prudential has also disclosed the financial aspects of the deal.

The UK insurer Prudential has declared that it has not any further plans to renew the bid for the US insurer AIG’s Asian business AIA. The previous deal was failed on 2nd June after Prudential was unsuccessful to negotiate for a lower bid price for the firm AIA.

Sources have said that there was a fresh takeover deal in the works from Prudential. Prudential has informed that they are committed to do business in Asia but for that they are not going to resurrect the deal with AIA.

The shares of UK insurer Prudential fell more than 20 per cent last week after it announced a deal to acquire AIG's Asian unit for $35.5 billion.

The reason behind the fall in share value is believed to be the lack of details provided by the company and its failure to disclose terms of the issue to the shareholders. The shareholders are anguished as the terms of the rights issue have not been disclosed to them.

Britain's second-largest insurer, Prudential Plc, is all set to pay a whopping S$428 Million ($306 Million) for acquiring the Singapore unit of United Overseas Bank Ltd., a development which will let the insurer expand further across the region.

As confirmed by official reports, the buying of UOB Life Assurance Ltd will be all cash, and the deal is scheduled to complete on January 31. All details regarding the arrangement have been confirmed by the Singapore based lender.