Omens are not looking good for UK insurer Prudential and its chances of buying AIA, the Asian arm of US insurance company AIG. If the deal does fall through, however, the Pru will abandon the £15bn (€17.9bn) rights issue it has been seeking to finance the transaction, and this will be welcomed by other companies hoping to come to market - not least fund managers Jupiter and Banca Fideuram, which are deciding this month whether to go ahead with initial public offerings.

The Pru's directors announced this morning that AIG had rejected the Pru's plan to reduce its offer for AIA from $35.5bn (€29.3bn) to $30.4bn. The Pru's board of directors said it was considering its position.