AIG sell expected to raise billions

Insurance
giant AIG will aim to raise about $15 billion from investors when it sells
shares in its Asian unit AIA, according to a number of reports.

The
insurance giant, which was bailed out by the US government during the financial
crisis, is expected to sell a 50 per cent share in the unit.

That
would value AIA at between $28.5 billion and $30.5 billion.

Meanwhile,
newspaper reports in India suggest AIG is also in talks to sell its Indian
mutual funds business.

The
Indian business publication Mint reported that AIG was considering offloading
the business for about $10 million.

The
moves are part of AIG’s efforts to pay back the US government, which spent
$182.3 bailing it out at the height of the financial crisis.

According
to anonymous sources quoted by the Financial Times, AIA’s initial public
offering could see $17 billion raised from investors.

Initially,
AIG had planned to sell AIA to UK insurer Prudential for $35.4 billion earlier
this year.

But AIG’s management
were forced to consider an IPO after a backlash from Prudential shareholders
caused the deal to collapse.