Pru plans to release rights prospectus: source

A successful rights offering would pave the way for Prudential's $35.5 billion takeover of American International Group (AIG) Inc's Asian life insurance business.

Barring any last minute glitches, Prudential is planning to release a composite document consisting of the rights offer prospectus and the prospectus for its listing on the Hong Kong and Singapore stock exchanges, the source added.

The Asia listings are expected to happen next week, said the source, who declined to be identified as the decision to release the prospectus had not been made public yet.

Prudential declined to comment.

Earlier on Monday, The Financial Times reported that Prudential and its advisors wanted to watch Asian markets open on Monday before fully committing to the launch.

The report also said Prudential was expected to offer investors four new shares for each share already owned at 135-140 pence a share.

The offer is likely to be near the bottom of the range given a recent fall in Prudential's share price, the report said.

Prudential's bid for AIG's Asian life insurance business hit a regulatory snag earlier this month and delayed the release of the prospectus for the $21 billion rights issue to part fund the deal.

(Reporting by Denny Thomas; Editing by Jonathan Hopfner)