On Wednesday, U. K. Insurer, Prudential PLC postponed the release of a proposed $20 billion rights issue owing to unsolved debates with the U. K.'s Financial Services Authority concerning Prudential's capital situation, flinging additional doubt onto a transformative Asian insurance deal that the company is after.

The intended deal by Prudential to take over American International Group Corp.'s (AIG) Asian insurance assets for $35.5 billion, now probably dangles in the equilibrium. The rights issue was being utilized to finance the acquirement.

The deal that resulted in a key sell-off in Prudential's shares when it was declared in March has been dogged by reports that it was not liked by the shareholders.

The rights issue prospectus was due for release on Wednesday, but Prudential said in a statement that it would change the timetable for the rights issue, without offering additional detail regarding time.

The company said, "Prudential is in continuing discussion with the Financial Services Authority regarding the transaction, in particular in relation to the capital position of the enlarged group under the Insurance Groups Directive".

It said that it would holdup the pricing and release of the rights issue, whilst looking to bring its arguments with the FSA to an end.