Challenging times may delay sale of AIG’s assets

AIG may have to delay selling off some of its assets due to the tough markets, AIG chairman and CEO Edward Liddy suggested on Dec. 11 in a speech to The American Chamber of Commerce & Hong Kong General Chamber of Commerce.
“These are challenging times to undertake divestitures and it’s quite possible that the pace or order of our divestitures will change,” Liddy told delegates in Hong Kong. “Nevertheless, I have made the very public commitment that we will pay down the entirety of the amounts we have borrowed from U.S. taxpayers.”
Some industry commentators believe that in order to begin repayment of a US$150-billion bailout package from the U.S. government, AIG must work quickly to sell off some of its business.
“Our strategy is to divest assets and become a more focused enterprise,” Liddy said. “Our focus in the future will be on our worldwide property casualty businesses with a continuing interest in our Asia life business.”
He went on to note that the U.S. government placed a five-year timeframe on arrangements for repayment and therefore AIG does not have to hold a “fire sale.”
“We are committed to identifying buyers that will honor our values and recognize the contributions of our people,” he said. “At the same time, we want buyers for these businesses who can provide the capital and leadership necessary to exploit the remarkable opportunities that the Asian economy promises for the businesses.
“We expect to entertain fully valued offers for our Asian businesses — and indeed for many premier businesses around the globe.”