LONDON (AP; 4/27) --American Express Co. is believed to be in merger discussions with insurer American International Group to create a new financial services giant, The Sunday Telegraph reported. If the deal goes through the company would be one of the world's largest, the newspaper said. American Express, the credit card, travel services and financial advice giant, is valued at $47.9 billion, while the value of AIG, America's most profitable insurer, stands at $96.7 billion, The Sunday Telegraph said.
A column in the April 27 edition of Business Week said investment manager Robin Manners West thinks American Express and AIG may be considering a merger in order to compete against Citigroup, the new entity to be formed by the recently announced merger between Citicorp and Travelers Group Inc. Harvey Golub, American Express chief executive, is known to have held extensive discussions with Citicorp last year, but the talks broke down over the allocation of top jobs, The Sunday Telegraph said. Officials at AIG and American Express could not be reached for comment Sunday.