UK’s biggest insurance group launched a delayed $21.4 billion share sale plan to finance the takeover of American International Group’s (AIG) Asian operations. Prudential needed to first satisfy regulators that the Company can maintain enough capital after the purchase. It was earlier being speculated that the proposed deal will fall through.

As part of the new arrangement, Prudential shareholders will get 11 new shares for every two they already own at 104 pence each, 81 percent less than the closing price on May 14. Financial Services Authority had earlier raised objections to the deal.

Financial analysts feel that Prudential still needs to fix a lot of things and the final deal is still too far and may take more time than earlier anticipated. Some are questioning the financial logic of the acquisition and feel that the Company is burdening itself.

Shareholders of Prudential are also critical of the deal and feel that the Company needs to offer more information to its shareholders. If the deal goes through, it will be the biggest deal in the Company’s history.

Prudential stresses that the value of the AIA will increase 80% by 2013. The Company feels that it will lead to increased market share and cost cutting.

The new entity will be one of the biggest Companies in many Asian markets. The shareholder approval vote for this deal will be held on June 7.