Prudential 'has no plans to revive bid for Asia's AIA'

The UK firm was left reeling after AIA's US parent - bailed out insurance giant AIG - refused to countenance a lower offer for the business amid worries among the Pru's shareholders over the high cost of the deal.

But a Sunday Times report said a planned float of the Asian business by AIG may earn less than the Pru's second 30.4 billion dollar (21 billion) offer - prompting another potential bid later in the year.

The Prudential quickly moved to quash the speculation that the deal could be revisited today.

It said: "We remain highly committed to Asia through our current very successful business. We will not be resurrecting the AIA deal and any speculation is misguided and inaccurate."

The failure of the bid – leaving the insurer with a 450m bill – has placed enormous pressure on the group's new chief executive, Tidjane Thiam, as well as chairman Harvey McGrath. Both claim the backing of the board and major investors but are both likely to face calls to quit at a stormy annual meeting tomorrow.

There could also be shareholder protests over "golden hello" awards for two new directors to compensate them for the loss of previous long-term pay schemes.

The AIA deal, which Prudential intended to fund through a record 14.5 billion cash call on shareholders, was dogged by regulatory concerns over the capital position of the enlarged group last month.

Mr Thiam also misjudged the mood of investors worried over the steep price being paid when he accepted a non-executive role at French bank Societe Generale.

He quickly withdrew from the post after criticism.

He became the FTSE 100 Index's first black chief executive when he took over last October after joining the Pru as chief financial officer from rival Aviva in 2008.