RPT-Prudential to pay max $735 mln in rights fees-sources

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LONDON, March 1 (Reuters) - Britain's Prudential (PRU.L) will pay as much as $735 million for its $21 billion rights issue, the biggest ever in a private sector to back an acquisition, sources said.

Prudential, which on Monday disclosed it would buy AIG's (AIG.N) Asian life insurance arm for $35.5 billion, will pay Credit Suisse (CSGN.VX), J.P.Morgan Chase (JPM.N) and HSBC (HSBA.L)(0005.HK) a fee of three percent, plus 0.5 percent discretionary fees for the rights issue, sources familiar with the matter said.

These fees come at a quarter of a percent higher than HSBC's $19 billion rights issue, which was a base fee of 2.75 percent plus a success fee of 0.5 percent.

"This is a good (for the investment banks) deal in terms of fees," said one London-based equity capital market banker.

The rights issue is expected to complete in June 2010 and be offered at a discount of about 40 percent, Prudential Chief Executive Tidjane Thiam told reporters on Monday. [ID:nLDE6200CL] (Reporting by Daisy Ku; Editing by Alex Chambers)