Britain is probing investment banks over insurer Prudential Plc's (PRU.L) failed $35.5 billion bid for rival AIG's (AIG.N) Asian business AIA (1299.HK) last year, two people familiar with the matter said. The probe, ordered by the Financial Services Authority, would examine the "circumstances surrounding the whole process," which left Prudential shouldering costs of 377 million pounds ($620.2 million), one of the sources said. "It is happening. It is focused on the advisors and whether they discharged their duties properly," the other person said, speaking on condition of anonymity. AIA's parent AIG (AIG.N) walked away from the deal last June, after Prudential tried to cut its bid price in a last-ditch attempt to woo shareholders baulking at the massive expense and a $21 billion rights issue. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For Breakingviews comment, please double click on ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
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