Britain's Prudential Plc is planning to launch its delayed $21 billion rights issue on Monday, the Financial Times reported, citing a person close to the situation.

The rights offering would pave the way for Prudential's $35.5 billion takeover of American International Group Inc's (AIG) Asian life insurance business.

The Financial Times report said that Prudential and its advisors wanted to watch Asian markets open on Monday before fully committing to the launch, according to the source.

The report also said the Prudential is expected to offer investors similar terms to those outlined a fortnight ago, which was four new shares for each share already owned at 135-140 pence a share.

The offer is likely to be near the bottom of the range given a recent fall in Prudential's share price, the report said.

Prudential's bid for AIG's Asian life insurance business hit a regulatory snag earlier this month and delayed the release of the prospectus for the $21 billion rights issue to part fund the deal.

(Editing by Tomasz Janowski)