Posts Tagged ‘AIA’

Notes From Underground: an update to Notes’s March 1 piece

May 28, 2010

In a developing story, it appears the U.K.’s PRUDENTIAL PLC┬áis trying to renegotiate its previous deal for AIG’s Asian insurance unit,AIA. We originally thought that PRU was paying a rediculous amount for the AIA unit, especially since they were using an already badly depreciated currency: the POUND. We only point to the story as being an influence on the POUND. If the deal fails to consummate, previous short STERLING positions, which were put in place to fund the deal, will have to be unwound. This will have an impact on the U.K. currency, both outright and on several crosses. We just want our readers to be aware of the implications of this potentially ill fated deal. (more…)