Monday, September 7, 2009

AIG to Sell Asset-Management Unit

Post by David Held

AIG to Sell Asset-Management Unit

Struggling insurer American International Group Inc. has reached an agreement to sell a portion of its investment advisory and asset management businesses for an estimated $500 million.

The buyer is Bridge Partners LP, a company owned by Hong Kong private-equity firm Pacific Century Group. AIG announced the deal Saturday. AIG is struggling to repay billions in U.S. government loans, and its new CEO, Robert Benmosche, has said he doesn't want to be rushed into fire-sale prices.

The price commanded by the unit, while well below the $800 million proposed in April by some potential buyers, is higher than the $300 million low end of expectations. Much of the final price, however, depends on the unit's performance.

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