The deal is be financed by a huge rights issue Shares in Prudential tumbled 12% after the UK's second-largest insurer announced plans to buy AIA for $35.5bn (£23bn).The Prudential said that the agreement to take over the Asian arm of AIG was a "compelling" chance to create South East Asia's leading insurer. But investors sent Prudential shares lower on concerns that the deal will be part-funded by a $20bn rights issue. Pru shares closed down 72 pence at 530p after hitting 515p at one point. ANALYSIS By Juliana Liu, BBC News, Singapore Hundreds of panicked customers queued outside the Singapore and Hong Kong offices of AIA to terminate their policies in September 2008, during the height of the global financial crisis.But after the US government bailed out parent company AIG, business returned. And now AIA will be sold to repay that debt. AIG is selling its crown jewels. Its Asian unit is the oldest in the region, and one of the most profitable.[Read more...]