AIG in talks with MetLife
STRICKEN US insurer American International Group (AIG) has restarted talks to sell its American Life Insurance Co (Alico) unit to rival MetLife in a deal that could raise $15bn (£9.3bn), it emerged yesterday.
The preliminary talks over Alico could break down, as they did in March when AIG, led by chief executive Edward Liddy, and MetLife disagreed over the price, according to people close to the situation.
Before talks broke off in March, MetLife is understood to have tabled $11bn for Alico, while AIG wanted $20bn.
The pair are now talking about $15bn for the unit, which has operations in 50 countries but is mainly based in Japan.
AIG is selling assets to help repay $83bn of loans from the federal government, which has a nearly 80 per cent stake in the New York-based company. AIG refused to comment.