It looks like American International Group Inc. will be selling more assets off soon so that it can start paying off its $150 billion government bailout.
AIG made its first asset sale Dec. 1, 2008, agreeing to sell a Swiss private bank to Aabar
Investments PJSC for Sfr407 million ($336 million). AIG also
sold its interest in
natural gas marketer Tenaska Marketing Ventures, Tenaska Gas Storage
and Tenaska Marketing Canada to
Tenaska Inc. for an undisclosed amount in a sale expected to close on Jan. 2. Looking ahead, the next asset sales to be announced could be any of the following:
Continue reading below
Prudential Financial Inc., Manulife Financial Corp. and a Japanese insurance company,
T&D Holdings Inc., and two non-Japanese firms are bidding for
AIG Edison Life Insurance Co. and AIG Star Life Insurance Co., according to
Reuters. The bidding process is expected to close this week, and a buyer should be announced by the end of the year, the article states.
AIG is also planning to sell Alico. A China Investment Corp.-led consortium was apparently in discussions to purchase a stake of 49% in Alico.
China Life Insurance Co. Ltd. is rumored to be acquiring AIG's
assets in Asia, AIA. No formal announcement has been made. Munich Re was rumored to be one of 30 bidders for the assets.
The Wall Street Journal has said AIG was prepared to
sell everything if necessary and that the future owners of the company won't be American.
In the meantime, AIG may have to find another financial adviser to help it sell off assets. J.P. Morgan Chase & Co. stopped advising AIG on divesting a dozen units, because it could have disqualified the bank from doing business with potential buyers for several years. Goldman, Sachs & Co. is its other financial adviser. - Maria Woehr
Lots of interest in AIG's Asian life insurance assetsAIG freezes management salaries, pays CEO $1 a yearSee AIG statement
See Dealscape post on AIG canceling bonuses
