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The emergence of Crestview as a favorite to win the company is a new development. In June, Temasek Holdings Pte. Ltd. of Singapore, Richard Li's Pacific Century Group and Franklin Resources Inc. were rumored to be finalizing a deal to buy the unit that has roughly $100 billion under management. However Franklin Resources decided to drop out the consortium, which may have left an opening for the buyout shop's group. Other bidders for the unit are thought to include Ashmore Investment Management Ltd., Hellman & Friedman LLC, Rhone Group LLC and TA Associates, as well as mutual fund manager Franklin Templeton Investments and asset manager Southgate Alternative Investments, according to The Wall Street Journal. Religare Enterprises has also bid for AIG Investments, according to the Journal. Assets that the insurer has already sold include:
The insurer also plans to spin off its its international life insurance divisions American International Assurance Co., or AIA, and American Life Insurance Co., known as Alico, through IPOs of separate special purpose vehicles that will knock $25 billion off what it owes to the government. Here are updates on the other asset sales AIG is working on: AIG's Advisor GroupAIG's Advisor Group division, housed within AIG's retirement services division, which consists of three broker-dealers -- SagePoint Financial Inc. of Phoenix, FSC Securities Corp. of Atlanta and Royal Alliance Associates Inc. of New York -- could sell for about $200 million. Private equity firms Clayton, Dubilier & Rice Inc. and Warburg Pincus have dropped out of the bidding for the division, leaving GTCR Golder Rauner LLC and several new bidders, The Deal's Michael Rudnick reported. However, the three broker-dealers have lost nearly 14% of their advisers since February. International Lease Finance Corp.The sale of AIG's aircraft leasing unit, International Lease Finance Corp., or ILFC, could be finished soon. Greenbriar Equity Group LLC and Onex Corp. may be closing in on the acquisition of AIG's ILFC. The Financial Times had reported that the insurer has received second-round bids from private equity firms Thomas H. Lee Partners and Carlyle Group, Onex Corp. and Greenbriar Equity Group, as well as an unidentified third bidder. As Dealscape previously noted, ILFC has a book value of $7.5 billion as of Sept. 30, and bids were supposed to come in at around $5 billion. However, Reuters is reporting that the unit may sell for under $5 billion. The figure is not surprising considering AIG needs to repay $100 billion in debt and does not have the cash to meet debt obligations of $33 billion for ILFC's operations in 2009 due to the struggling airline business and loss of its federal commercial paper lending facility after key credit ratings were cut. The FT reported that the government may even extend AIG a $5 billion loan to divest ILFC, which should just about cover the purchase for the private equity firm that decides to buy the unit. The credit line would come from the $180 billion bailout the government has already extended to the insurer. AIG Global Real Estate and moreThe 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 (which might be a conflict because Blackstone is advising). Included in that is its Japanese headquarters in Tokyo, which may bring in more than $1 billion. AIG's property and casualty division could also be on the block or may spin out into a public entity. Ski resort Stowe Mountain Resort is also up for sale, according to The Burlington Free Press. - George White
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American International Group Inc. (NYSE:AIG) is reportedly close to deal to sell off its asset management business, AIG Investments, to a consortium led by private equity firm Crestview Partners. A source 
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