LONDON (AP) - Prudential plc. yesterday published its prospectus laying out its plans to acquire Asia-based life insurer AIA Group from bailed-out US insurance firm AIG, launching a three-week campaign to line up support from shareholders.

The $35.5 billion price is the key issue, with some investors and analysts believing it is too high.

Prudential needs backing from holders of 75 percent of its shares at a meeting on June 7.

"Yesterday's update on the combination of Pru and AIA, together with the terms of the rights issue has not changed our earlier view that Prudential is overpaying for AIA," Barrie Cornes, analyst at Panmure Gordon, said in a research note yesterday.

"We recommend that investors vote against the deal, and on this basis we maintain our buy recommendation, given that we would expect the share price to rally following such a vote," he said.

Prudential shares were down 1.2 percent at 628 pence in midday trading on the London Stock Exchange.

Opponents of the deal have formed a Prudential Action Group, which is seeking to muster support for a vote of no confidence in the Pru's chief executive, Tidjane Thiam.

The Action Group is backed by Neptune Investment Mangement Ltd., which manages an 0.2 percent stake in the Prudential.

"The enormous expansion into Asia achieved by the deal would come at the cost of consuming cash generated by the Prudential's UK operations while the Asian operations offer good growth potential they do not themselves generate significant cash flow," says a statement on the Action Group's website.