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AIG Says It Will Not Change Terms of $35.5 Billion AIA Sale to Prudential

American International Group Inc. has rejected a request from Prudential Plc to cut the price of its $35.5 billion offer for AIA Group Ltd.

New York-based AIG “will adhere to the original terms of its previously announced agreement with Prudential,” it said in a statement today.

Prudential said it had proposed a revision to the terms of its acquisition that would have reduced the price to $30.4 billion, according to an e-mailed statement from the London- based company today.

Prudential’s Tidjane Thiam, who has staked his career on the purchase of AIG’s main Asia unit, had asked the price for AIA Group be cut to appease shareholders who said the deal is too expensive. AIG’s majority owner, the U.S. government, signaled late last week that a price of around $30 billion may be too low, and that it hadn’t considered alternatives to the original March 1 agreement.

Thiam, who became chief executive officer last year, needs 75 percent of Prudential investors to approve the largest rights offering in history for an acquisition. The London-based insurer has scheduled a June 7 meeting of shareholders. For AIG, the sale of AIA, with 23 million customers across Asia, would be its biggest step to repay U.S. taxpayers.