Bidders for AIG's assets wait in wings

While American International Group Inc.'s shareholders hold a vote to issue warrants to the Federal Reserve for up to 79.9% of AIG's outstanding shares, buyers are waiting in the wings to bid on assets as the insurer restructures.

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AIG's $85 billion bailout by the Fed will give the company some time to restructure and divest some assets, although they may still be at a discount. Of course, valuations would still be well above liquidation prices had the holding company been forced into bankruptcy, according to The Deal's Michael Rudnick.

A Sunday research report by Keefe, Bruyette and Woods Inc. identified AIG's "most likely saleable" assets as its aircraft leasing unit International Lease Finance Corp., its publicly traded Transatlantic Holdings Inc. reinsurance business and its personal property and casualty lines. The Wall Street Journal also is reporting that AIG is mulling the sale of its Brazilian assets, which include Unibanco-AIG, the fourth-largest Brazilian insurance company; a 7.34% stake in Providencia Industria e Comercio SA, a Brazilian manufacturer of plastics and textiles; and a local private equity fund.

So who are the potential bidders? The Wall Street Journal is reporting that International Lease Finance may be bought by the unit's founder, Steven Udvar-Hazy. The unit's staff had shown interest in buying it from the parent a few months back. Bloomberg is reporting that billionaire Warren Buffett and AIG co-founder Maurice "Hank" Greenberg may be interested in assets. Buffett was apparently in conversations with AIG prior to the Fed's bailout. Also, rivals Allianz SE, Prudential and Munich Re may also bid for assets. Munich Re, the world's biggest reinsurer, may pursue AIG's insurance business in Eastern Europe or its industrial protection unit, CEO Nikolaus von Bomhard told German newspaper Handelsblatt. - Maria Woehr

Also see:
See Bloomberg story
AIG plans asset sales

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