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Published September 22, 2008 at 5:06 PM
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 It's one of the biggest garage sales in history, or that's what it might feel like to Edward Liddy, the new chairman and CEO of American International Group Inc. Faced with the task to raise $85 billion in the next two years to pay back the Federal Reserve, Liddy is spending the next four weeks sorting through AIG's basement to figure out what assets the company can part with and peg with a price tag.
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AIG is one of those companies that owns everything insurance-related and some other odds and ends such as the Stowe Mountain ski resort in Vermont. The company's Financial Supplement for the Second Quarter breaks down the specifics of each of the company's assets, but here is a general overview of the assets, potential prices and a list of bidders that could be interested in getting their hands on those businesses.
- The general insurance business including property casualty insurance, Transatlantic Holdings Inc. and its mortgage guaranty could be of interest to many insurers. AIG has a 59% stake in Transatlantic, which could be worth about $2.3 billion, according to an unnamed source speaking to The Daily Deal. Interested bidders could include Berkshire Hathaway Inc.'s Warren Buffett and Maurice "Hank" Greenberg, AIG's largest shareholder and former chairman. Greenberg disclosed interest in acquiring the company through his CV Starr & Co. investment vehicle. Japan's Tokio Marine Holdings Inc. or Australia's QBE Insurance Group could also be interested in the assets, according to Reuters.
- The life Insurance and retirement business is the most valuable part of the business, according to The Daily Deal's Michael Rudnick, and could pay off almost half of the Federal Reserve's loan. AIG's domestic life operations could generate at least $41 billion from a sale, a source told The Daily Deal. AIG's foreign life insurance business could alone sell for $50 billion Gary Ransom, an analyst with Fox-Pitt Kelton, told The Associated Press. Bidders for the life businesses might include Allianz SE, Sun Life Financial Inc., Munich Re, AXA Group, Manulife Financial Group and Prudential Financial Inc. Other potential bidders, according to Bloomberg, could include Chubb Corp., Ace Ltd. or Allianz's Fireman's Fund Insurance unit, which might be interested in buying AIG's unit that sells coverage to individuals through independent agents.
- Financial Services, which includes aircraft leasing, capital markets and consumer finance operations, was an asset AIG was said to be exploring the sale of prior to the Federal Reserve's bailout of the company. AIG's International Lease Finance Corp., which leases more than 900 aircraft with asset values over $44 billion, could sell for its book value of about $7.5 billion, while the consumer finance operation could command its $2.5 billion book value, according to The Daily Deal. 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.
- Asset management and international operations. 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.
- Maria Woehr
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aig what should be the stock prise ?