The sale of American International Group Inc.'s (NYSE:AIG) American Life Insurance Co. unit to MetLife Inc. (NYSE:MET) may just have legs.
News of a potential deal in the neighborhood of $15 billion was first reported by the Financial Times.
A spokesman for Blackstone Group LP (NYSE:BX), which is running the auction along with J.P. Morgan Chase & Co. (NYSE:JPM), said the FT article was "premature" and that talks with MetLife were "very preliminary."
But they are taking place. This much we know.
AIG ended its talks with bidders for Alico when it received its fourth
government bailout in March, and interested parties AXA SA (NYSE:AXA), Prudential plc (NYSE:PUK)
and China Investment Corp. have reportedly lost interest since then.
But MetLife, which reportedly bid only $11 billion in March when AIG wanted
$20 billion, is back in the running. AIG may be willing to yield a bit on that number but also wants to sell Alico in one piece, which could be a
problem.
The tides are turning in MetLife's favor, though, With increasing pressure
from the U.S. government for AIG to sell assets quickly and decreasing
interest from the major Alico bidders, MetLife is in a position to
negotiate.
A J.P. Morgan spokesperson would not comment on the talks.
- Lisa Allen
Also see:
AIG to sell Alico to MetLife?
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