Bids for American International Group’s Asian arm are due Friday and a number of prospective bidders, including HSBC Holdings and AXA SA have abandoned the process and no further bids may be forthcoming, the Wall Street Journal reports.
AIG initially intended to sell 49% of American International Assurance, which is Asia’s largest life insurer with operations in 10 countries. It has since signaled it would sell the entire unit.
AIG has embarked on a series of asset sales across the globe to help pay back the U.S. government. In addition to auctioning off part of AIA, AIG is selling stakes in insurance divisions in Japan, the Philippines and other units in Asia.
The sale of AIG’s American Life Insurance Co, a unit that generates more than half its revenue from Japan, could fetch more than $10 billion. Bids for all AIG units under auction are due on Friday, sources say.
Like its other assets, the auction of Hong Kong-based AIA has been hampered by AIG’s worsening financial state and a drop in markets globally, limiting the number of potential buyers.
Bank of China dropped out of the process last month, dealing a big blow to the auction as AIG hoped the cash-rich bank would submit an attractive offer and become a front-runner, according to sources.
At 12:24 PM EST American International Group, Inc. (NYSE:AIG) stocks jump more than 10 per cent. It is good for AIG to increase stocks value.
Comments are closed.