AIG postpones talks on foreign life unit sale
NEW YORK, March 4 (Reuters) - American International Group Inc (AIG.N) has suspended talks with bidders for American Life Insurance Co (Alico), its foreign life unit, as it reviews options, a spokesman said on Wednesday.
"We have postponed communications while we conduct a strategic review," spokesman David Monfried said.
The company is still in negotiations with bidders for American International Assurance Co (AIA), its prized Asia unit, Monfried said.
Prudential Plc (PRU.L) and Manulife Financial Corp (MFC.TO) made preliminary offers for AIA, although Prudential's offer fell short of what AIG wants, Reuters reported Tuesday.
On the sale of Alico, insurance companies Axa SA (AXAF.PA) and MetLife Inc (MET.N) have expressed an interest, sources have said.
In both cases, the strategic review for the businesses includes a possible initial public offering, Monfried said.
AIG posted a record quarterly loss of $61.7 billion on Monday and said the government had agreed to revise its bailout package, which included a plan to put AIA and Alico in trusts and give the U.S. government preferred ownership interest.
The insurer hopes to reduce the outstanding balance of a Federal Reserve credit line by up to $26 billion in return for the preferred shares in these operations. (Reporting by Paritosh Bansal; editing by Jeffrey Benkoe) (For more M&A news and our DealZone blog, go to www.reuters.com/deals)
