Insiders told the Financial Times that the company is hoping to get the current $35.5 billion price down to $30 billion to help ensure shareholders vote in favour of the acquisition of AIA, which is an Asian subsidiary of American International Group (AIG).
A statement for Prudential did not confirm whether or not talks on the price were underway.
"We would constantly have ongoing discussions with AIG on a transaction of this size," a spokesman said.
Prudential needs 75 per cent of its shareholders to back the takeover in a vote taking placing on June 7th 2010, but earlier this week a RiskMetrics report advised them to vote against the AIA purchase.
It stated that Prudential would need "very high growth rates" at AIA for a "reasonable return" on the investment.
By Asim Shah