AIG sells unit to Bridge for fee of $500m
BAILED-OUT US insurer American International Group (AIG) has struck a deal to sell its investment advisory and asset management operations for around $500m (£305m), the company said at the weekend.
Bridge Partners, which is owned by private equity house Pacific Century Group, is to buy AIG Investments for an initial $300m, but the price could rise to $500m based on future payments linked to performance.
Alain Karaoglan, AIG’s senior vice president of divestiture, said the sale “provides fair value for AIG”, although new chief executive Robert Benmosche is believed to have been seeking a deal worth up to $800m.
Benmosche has previously said that AIG will not be rushed into selling off assets at fire sale prices as the company bids to repay some of the $180bn in state handouts and guarantees it has received during the financial crisis.