Alico could sell for as much as $1 trillion yen ($10.6 billion), according to reports
Jan 7, 2009 12:58:13 (ET)
LONDON (Dow Jones)--American International Group Inc. (AIG) has sent out information memorandums to potential buyers of its American Life Insurance Company unit, known as Alico, two people familiar with the matter said Wednesday.
The move signals that the crippled financial giant is starting to embark on larger disposals following the sale last month of its specialty insurer unit HSB Group to Germany's Munich Re for around $742 million.
The disposal of HSB was the first sizable divestiture by the company, as AIG seeks to pay back as much as $60 billion in loans it received as part of its September rescue by the U.S. government.
Alico could sell for as much as $1 trillion yen ($10.6 billion), according to reports. It operates in 55 countries, including Japan, where it is the largest of AIG's three life insurance businesses.
The expansion of the rescue package in mid-November gave AIG more time to seek out buyers for Alico, delaying the start of the disposal process until the new year.
AIG has yet to send out information packs for the sale of a stake in American International Assurance, another large unit, the people added.
AIA oversees AIG's life insurance business in Asia, excluding Japan.
-By Victoria Howley, Dow Jones Newswires; 44 20 7842 9261; email@example.com
Thanks for info, Skblast. In the M&A world this is called "sending out a book." It is the first part of the marketing process when you sell a company. This means they are very early in the game with Alico. If they take a normal amount of time with this one (and they might because it's a biggie) this type of deal could take six months or more.