Metlife could get American unit of AIG


Andrew Sorkin at NYtimes’ Dealbook just updated below

Update | 1:12 p.m. MetLife has emerged as the lead bidder for the American International Group’s Alico life insurance unit, people briefed on the matter told DealBook, as A.I.G. seeks to sell off the unit to help repay its $182 billion in government aid. The February offer was a good 25% lower at $11 billion

[picapp align=”left” wrap=”true” link=”term=aig+building&iid=4269881″ src=”8/4/c/3/PicImg_AIG_gives_company_2d16.JPG?adImageId=9298971&imageId=4269881″ width=”234″ height=”156″ /]Under the terms being discussed, MetLife would pay about $14 billion to $15 billion for the A.I.G. business, these people said. A.I.G. has said that in a disposition of Alico, about $9 billion of the proceeds would go toward repaying the government’s lifeline.

A deal for Alico is still two to three weeks away, these people said, cautioning that negotiations are ongoing and may still fall apart. MetLife and A.I.G. held talks about a potential sale of the unit before, only to fall apart over price.

via Dealbook | NY Times

Alico services 19 million customers in 54 countries with a government interest of $9 billion , while the IPO candidate AIA based in Asia is the other new Life insurance entity with a $16 billion Govt interest i.e. a $20b equity capital base. Reuters story here

The Alico and AIA book together make up the $600b in investment assets with AIG and a $14 billion price tag should turn in a neat book profit and cash for returning the govt liabilities of $180 billion. The AIA IPO will be a further $8 billion and has waited for Benmoshe and/or Greenberg to complete the Alico deal.

P.S. We are not mentioning the ink on N Y Times to Alico that still links to an Alco inc. in Agribusinesses, but really the way people disrespect paper and newspaper, it’s funny, rofl..

Also, in the mean time, Bernanke has stepped in to try and clear his name:

Bernanke, Hoping to Quiet Critics, Seeks Review of Fed’s A.I.G. Bailout By THE ASSOCIATED PRESS

[picapp align=”right” wrap=”true” link=”term=AIG&iid=6809696″ src=”0/f/f/7/Neil_Barofsky_testifies_ccc9.JPG?adImageId=9298931&imageId=6809696″ width=”234″ height=”156″ /]The $182 billion rescue has sparked public outrage and demands in Congress for more information about the lifelines, beginning in 2008, provided to the company.

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About zyakaira

Investment Banker, 40s, Bangalore This Biopic and this web recreates how one point of view, one person can impact a tremendous economic engine that the world thrives and mis-thrives on. This one has the knowledge and the civil sense , the art of conversation and some good writing to mentor others as powerful and help global managers develop and fine tune their approach on US markets, China, India and the world. Read on here, and let me know what you need. It can be a race for TRPs, a race for new markets and a race to do what is right. I have the pulse of the crisis, the recovery and the market direction and can help you build and refine your strategy as i have helped thousands of managers and multiple global corporations. Of course, it’s more fun if you talk to me. I am in favor of leading this moving of the economic crisis and will partner with you in a soft and subtle way, just the way we both ride to the top. But you can write with us, opine and just reply with aplomb and shine on Twitter , 4 square , Facebook and any other social “choupal” of choice via zyaadakairaada Profile & Portfolio - SocialPicks Different flavours at: http://benchilibowl.wordpress.com http://zyaada.mp

Posted on January 20, 2010, in Bank Stocks, Financial Markets, O'nomics, TARP and tagged , , , , , , . Bookmark the permalink. Leave a comment.

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