AIG’s Sale of Asian Business on Hold: Globe and Mail

In an apparent effort to buy time and attract a better offer, American
International Group (AIG) is handing a preferred interest in its prized
Asian business to the U.S. government, following a bid by Manulife Financial,
the Globe and Mail reports.

American International Assurance Company (AIA)-AIG’s Asian unit-has
an estimated value of US$20 billion and was the subject of a purchase
offer in late February by Manulife. AIG’s deadline for initial offers
passed on Feb. 27, but it was apparently less than pleased by what transpired.

After
posting the largest quarterly corporate loss in history on March 2
and securing a further US$30 billion in government aid, AIG may feel
that it is in the position to buy some time and wait for a better offer,
according to the Globe.

AIG has also rejected an offer from
Manulife for Philippine American Life, choosing instead to combine
the operation with AIA.

This story was originally published by Canadian Insurance Top Broker.