Chinese investors seek AIG investment bargain
by David Masters
Story link: Chinese investors seek AIG investment bargain
American Life Insurance Co (Alico), an international life insurance branch of American International Group (AIG), may be acquired in part by a group of China-based investors.
AIG is currently on an asset selling spree to raise funds to pay off a $152 billion bailout loan from the US Federal Reserve.
However, AIG wants to keep boardroom control of Alico, meaning that it must retain at least a 51% stake in the company.
Selling a 49% stake in American Life Insurance Co (Alico) would raise between $5.3 billion and $10.6 billion for AIG.
AIG spokesperson Joe Norton refused to comment on the negotiations.
China Investment Corp (CIC), the wealth fund engaged in merger talks with AIG, believes that if China and other developing countries help to rescue the world’s financial system, they should be given more of a say in how the world’s economy functions.
Jin Liqun, chairman of CIC’s supervisory board, said the fund – which manages part of China’s $2 trillion foreign exchange reserves – will not be put off foreign investments by the current turmoil in global financial markets.