American International Group Inc. (NYSE:AIG) CEO Robert Benmosche may soon have another asset sale in the bag to complement his
$10.5 million pay package.
Although spokesperson Mark Herr couldn't confirm reports by the
The Wall Street Journal and Taiwan's Economic Daily News, Primus Financial Holdings Ltd. has allegedly won the bidding for AIG's Taiwan unit, with an offer of $2.2 billion.
Reports are that Benmosche was thinking of pulling the plug on the sale of the asset if bids didn't break $2 billion.
Benmosche has gotten some flack lately for his brashness toward regulators, requests for corporate jets and halting some asset sales due to low valuations.
"He should be doing more work figuring out what strategies he's
going to implement to make the company successful, and less time
telling everyone he's the boss," Andy Barile, chief executive of
insurance consultant Andrew Barile Consulting Corp.,
told CNN Money.
Still there remains a lot of doubt that
AIG will eventually be able to pay back its loans through divesting units. Its government bailout is valued at
about $182.5 billion, but the insurer says it
actually owes the government $38.8 billion in loans and $44.8 billion in equity capital. So far AIG has only
sold over $9.8 billion since its rescue last year. There are still several businesses on the block including:
- The 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 (NYSE:BX) (which might be a conflict because
Blackstone is advising). Sources told Pensions & Investments that if it sells the unit Win J. Neuger will continue as
CEO.
For the latest on all of AIG's auctions, check out The Deal Pipeline (subscription required).
In addition, AIG, is preparing to take both its American International
Assurance Co. Ltd., or AIA, and its life insurance unit, American Life
Insurance Co., or Alico, public. The company is also trimming costs on advisers and has scrapped Project Destiny, former CEO Edward Liddy's long-term plans for the company. Benmosche still has yet to announce his own long-term strategy for the insurer's future and how the insurer plans to pay back the government. - Maria Woehr
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