|
Published February 19, 2009 at 3:08 PM
|
 American International Group Inc. could announce more asset sales in order to pay off its $150 billion government bailout. Bidders for its Philamlife unit have until Feb. 23 to submit their bids, and the sale, which is expected to net $4 billion, could be announced the first week of March, according to Reuters.
Continue reading below
The f our
potential buyers for the Philippine life insurance business are the Bank of the Philippine Islands, Banco de Oro
Unibank, Manulife Financial Corp. and an unidentified
foreign investor. Banco de Oro confirmed it was preparing to submit a
bid on Monday. Bank of the Philippine Islands will apparently partner with insurers Assicurazioni Generali SpA and Jerneh Asia Bhd of the Kuok
Group. East West Banking Corp. has already
scooped up Philam's Savings Bank, consumer bank and car financing. AIG has already announced several sales:
Other asset sales may not be far behind. Here's the latest: - International Lease Finance Corp., apparently worth $6 billion to $10 billion, has reportedly drawn
interest from several private equity firms including Carlyle Group, Kohlberg Kravis Roberts & Co., TPG Capital, Greenbriar Equity Group
and sovereign wealth funds Temasek Holdings Pte. Ltd., Istithmar World
PJSC, Kuwait Investment Authority and China Investment Corp. China Investment Corp. hopes to partner with local banks such as Industrial and Commericial Bank of China and Bank of China to fund the purchase. TPG apparently dropped out of the process.
- It has been widely reported that AIG is in talks to sell personal car insurance
unit, 21st Century Insurance, to Zurich Financial Services.The asset is rumored be be worth $2 billion.
- AIG is supposedly in the works to sell three broker-dealers to a private equity firm (see The Deal's Pipeline). Rumored bidders include Bain Capital LLC, Hellman & Friedman LLC, Carlyle Group and KKR.
- AIG Global Real Estate fund management business has around $12.4 billion in assets and $5.2 billion in equity capital. The unit could be sold for about $9 billion. Interested bidders could include BlackRock Inc. and Blackstone Group LP. Included in that is its Japanese headquarters in Tokyo, which may bring in more than $1 billion.
- AIG
Edison Life Insurance Co. and AIG Star Life Insurance Co. are also for
sale. Bidders could include: Prudential Financial Inc., Manulife
Financial Corp. Allianz Group, Aegon NV, Nippon Life Insurance Co.,
Tokio Marine
Holdings Inc., Gibraltar Life Insurance Co. Ltd., T&D Holdings Inc.
and Manulife Life Insurance Co.
- American International Assurance, or AIA, bids on a stake of 49% or more in the life insurance unit
are due at the end of February, with analysts pegging the sale with an
estimate at about $20 billion. Bidders include China Life Insurance Ltd. HSBC Holdings plc,
Prudential plc, Manulife Financial Group Inc. and Allianz Insurance Co. It is rumored that CIC, China's sovereign
wealth fund, may help China Life Insurance Ltd. fund the deal if Bank of China doesn't bid. Insurer Great Eastern Holdings Ltd. also said it would
consider buying Asian assets of AIA, if
the insurer decides to sell the assets separately.
It's a good thing that more AIG asset sales could be announced in the next month or so, especially since shares traded at 60 cents on Thursday afternoon. Although
CEO Edward Liddy says the asset sale is not a "fire sale" with shares inching toward zero, he must be sweating a little. - Maria WoehrAlso see: Bank of China to throw water on AIG asset sale?Zurich may drive off with AIG unit
|
