Britannic Asset Management, a shareholder in both Aviva and Prudential, last night threw its weight behind Aviva's £17bn (€24.5bn) bid approach for its rival, saying there are compelling reasons for the deal to go ahead although determining the right price "remains an obstacle".

Philip Graves, a UK equity fund manager at Britannic Asset Management, said: "The strategy rationale for the deal makes sense and I would like to see the deal go ahead. The right price for the Pru depends a lot on where the Aviva share price ends up."