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Quick Hits: AIG Sold for Scrap


Brief scrutiny of today's headlines.

Insurer AIG (AIG) is preparing to sell assets likely to catch the eye of private-equity funds, sovereign-wealth funds, and both US and European insurers.

Prospective buyers are likely to pick off AIG's key assets, including operations in Japan and Asia, some of its US insurance businesses and International Lease Finance, an aircraft leasing unit.

AIG must sell assets to cement its standing as an independent company after nearly collapsing last month. Uncle Sam made a 2-year loan of up to $85 billion and has the right to a 80% stake in AIG, the Financial Times reports.

AIG wants to retain key parts of the company, including insurance operations in Japan and the rest of Asia. Each could be worth $20 billion to $25 billion. The operations in China, Taiwan, Thailand and Japan are likely to attract interest from private equity firms, including KKR.

Analysts at Credit Suisse say Germany's Allianz, France's Axa, Italy's Generali and British insurers Prudential and Aviva may take a look at these businesses.

The Financial Times says Hank Greenberg, former head of AIG, is trying to assemble a group of investors to buy the entire company or parts of it. He may be interested in bidding on the Asian operations if they're sold.
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