 Pru recently revealed operating profits had risen 33% to �1.3bn |
Insurer Aviva has ruled out making a hostile bid for Prudential despite its proposed �17bn offer being turned down. Shares in Prudential surged after Aviva set out its offer, adding that any bid would have to be recommended by Prudential's board.
The UK's largest insurer said it was offering 82 new Aviva shares for every 100 Prudential shares - the equivalent of 708p per share.
Aviva added that the move would lead to estimated cost savings of �320m a year.
The company's decision to go public with the terms of its offer is now expected to put pressure on Prudential to come to the negotiating table.
Unwanted bid
On Saturday, Prudential rejected the approach saying the approach was "not in the best interests of its shareholders".
The group stuck by its decision to reject the "unsolicited and unwanted" takeover offer in the wake of Aviva's statement.
 |  The combination of Prudential and Aviva has a compelling strategic, financial and operational logic |
"Last week's strong results demonstrate the positive momentum of Prudential's businesses and the exciting prospects evident under our new management team," chairman Sir David Clementi said.
"The potential of our high growth, high margin businesses is tremendous and distinctive.
"A combination with Aviva would dilute the benefits of this growth for our shareholders. The board does not believe the proposal is in the interests of Prudential shareholders."
'Real opportunity'
Experts also say the approach could encourage approaches from other major insurers such as France's Axa or Germany's Allianz.
"The combination of Prudential and Aviva has a compelling strategic, financial and operational logic," Aviva chief executive Richard Harvey said.
"This is a real opportunity to create a leading player in the global savings, investments and insurance market.
"The group would have significant presence and growth opportunities in Europe, Asia and the US."
The offer represents a 10% premium on Prudential's share price last week.
A combined Aviva and Prudential would have 50 million customers, 80,000 staff and �350bn of funds under management.
Prudential shares closed up 71.5 pence - or 10.6% - at 743.5p while Aviva's shares were up 2p at 848.5p.
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