Global broking giant Aon has announced plans to raise over £600m to enhance its capital position.
In anticipation of debt maturing in 2003, Aon has scrapped plans to sell all or part of its underwriting operations "due to the unfavorable mergers and acquisitions environment."
The company made the the announcement during the release of its third-quarter results. Aon reported net income of £184m for this year's first three quarters, a 140% increase over the same period in 2001.
Of its capital raising plans, £319m to £383m will be done through equity or equity-linked securities, and £255m to £319m will be in debt replacing.
In response to the plans investors sent shares in the company down more than 9% to £11.80.
An Aon statement said: "As a result of this decision, Aon will not pursue a specialty property and casualty underwriting strategy.
"The company will have costs associated with original build-up plans during the fourth quarter. Aon is supporting the management team in pursuing other opportunities."
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