Aviva drops plans to bid for Prudential

LONDON, Mar 24 (Reuters) Britain's biggest insurer Aviva Plc said on Friday it had dropped its 17 billion pound (.5 billion) bid proposal for Prudential Plc after failing to win over the board of its closest rival.

''In coming to its decision, the board of Aviva determined that it was not in the best interests of its shareholders to make any material adjustment to its proposed terms,'' Aviva said in a statement.

Aviva added that it reserved to right to make an offer if Prudential changed its mind or if a third party announced a firm intention to bid for Prudential.

At 1413 GMT (1943 IST), Prudential shares were down 5.7 per cent at 675 pence. Aviva shares were up 2.2 per cent at 840p.

REUTERS SD DB1958