The Prudential is facing a tough week after it rejected 700p-a-share proposal from the UK's largest insurer Aviva.
Speculation is now rife that the insurer could now be subject to a hostile takeover either from Aviva, or other potential buyers AXA or AIG.
It emerged at the weekend that Aviva had proposed a £16.8bn all share deal for Prudential. Under the agreement Aviva said it would issue new Aviva shares in return for Prudential shares.
The Prudential shareholders would be left with 45% of the enlarged company.
Reports today said Aviva's directors would meet this week to discuss the options, this is thought to include either raising its offer for Prudential or walking away from thedeal.
