Slaughters takes headline role for Prudential on $35bn AIG Asia buyout

Slaughter and May and Debevoise & Plimpton have scored advisory roles on Prudential's high-profile plans to purchase the Asian assets of American International Group (AIG) for more than $35bn (£23.3bn).

The two insurance groups are in advanced discussions over the sale of US Government-controlled AIG's subsidiary AIA, with Prudential this week (1 March) confirming both the discussions and the suspension of its shares as a result.

Slaughters has won the mandate to advise Prudential, with corporate partner William Underhill leading a team alongside corporate partners Roland Turnill and Nilufer Von Bismarck and finance partners Guy O'Keefe and Matthew Tobin, who are dealing with the acquisition finance elements.

The firm is advising Prudential both in relation to the planned acquisition and a proposed rights issue to fund the takeover. Cleary Gottlieb Steen & Hamilton is serving as US counsel to Prudential with London-based US securities partner Sebastian Sperber, New York corporate partner Victor Lewkow and Hong Kong corporate partner Sung Kwan Kang advising.

Other Slaughters partners involved include Robert Chaplin (corporate and commercial), Jan Putnis (financial regulation), Mike Lane (tax), Bertrand Louveaux (competition) and Susie Middlemiss (intellectual property).

AIG has turned to regular adviser Debevoise, where New York-based financial institutions group co-head John Vasily is leading a team that also includes London insurance partner Jeremy Hill. Weil Gotshal & Manges is also advising as co-counsel to AIG.

Herbert Smith is advising the underwriting banks JP Morgan, HSBC and Credit Suisse on the proposed rights issue, with corporate partners Will Pearce and Alex Bafi leading the top 10 City firm's team alongside finance partner Chris Fanner.

Cravath Swaine & Moore is representing Goldman Sachs and Citibank as financial advisors to AIG with a team led by corporate partners Robert Townsend and Craig Arcella.

City firm Norton Rose is also thought to have picked up a regulatory advisory role advising AIG, with the firm running a team led by corporate and regulatory insurance head James Bateson.

The total $35.5bn (£23.9bn) consideration would comprise $25bn (£16.8bn) in cash and $10.5bn (£7.1bn) in shares. The rights issue would be used to finance the cash component of the deal, with Prudential hoping to raise $20bn (£13.5bn) through the rights issue, with the remainder through debt issuance.

Slaughter and May on the Legal Week Wiki