Prudential Hits An Iceberg (PUK, AIG)

Today in trading, life insurance giant Prudential (NYSE: PUK) saw its stock price continue to plummet. The stock is currently down 12.76%, to 16.14 from the previous close of 18.50.

It was announced today that the UK branch of Prudential is purchasing the Asian unit of AIG (NYSE: AIG) for a reported $35.5 billion. While an immediate drop in stock value is expected for many companies who make large acquisitions, there is some doubt as to whether or not the Asian branch of AIG will be profitable enough to justify the sale, due in part to a lack of clarity regarding the Asian branch's financials.

AIG's stock climbed following the news. It is currently up 6.42% on the day, at 26.36.