Prudential is in talks with US group AIG in an attempt to cut the price of its $35.5 billion acquisition of its Asian unit AIA. With the deal on the verge of implosion, Pru shareholders in revolt, and no other suitors on the horizon, AIG has acquiesced in the renegotiation: it has little or no choice.

The Prudential’s top shareholders -BlackRock, Legal & General and Fidelity – remain vehement that $35.5 billion is too high a price.

Sources close to the situation suggest that a 15 -20% cut in the original price is being sought, suggesting a new price somewhere around $27-$30 billion.

Meanwhile, more hawkish Prudential shareholders accuse the company of slapdash due diligence, and want the deal called off at almost any price.

An insider told The Slog tonight that “without a big price reduction, the deal is effectively off”.