Press Trust of India
Posted: Thursday, Jan 21, 2010 at 0006 hrs IST
Updated: Thursday, Jan 21, 2010 at 0006 hrs IST
New York: Insurer American International Group Inc (AIG) is nearing a deal to sell-off one of its international life-insurance unit to rival MetLife Inc for around $15 billion, a media report says.
Citing people familiar with the matter, The Wall Street Journal said,
AIG has in recent weeks been in final negotiations to sell a big international life-insurance unitto rival MetLife Inc, for $14-15 billion. If the deal goes through, US taxpayers may finally be getting a chunk of their money back, as AIG would be able to repay some of the bailout funds received by it from the government to tide over the global financial crisis.
A deal would return $9 billion already earmarked for the Federal Reserve Bank of New York, which largely directedthe historic and controversial AIG bailout in September 2008, the report stated.
The rest would go to AIG, which could also use it to reduce its debts to the government, which has an 80% controlling stake in the insurer, it added.The WSJ report said, A MetLife purchase of American Life Insurance Co unit, coupled with a separate public offering of another unit known as American International Assurance Ltd, could eventually produce up to $45 billion for taxpayers. A person familiar with the matter said, This could be that big step so the government can show progress on AIG.
