China PICC in talks with AIG, Scor to buy into $4 bln HK IPO -IFR
Nov 15 (Reuters) - Chinese state-owned insurer PICC Group is in advanced talks with American International Group Inc, China Life and at least two other companies to become cornerstone investors in its up to $4 billion Hong Kong initial public offering, Thomson Reuters publication IFR reported on Thursday, citing sources.
Other potential cornerstone investors include French reinsurance company Scor and Chinese utility State Grid Corp (SGCC), IFR said.
Other insurance companies in Asia, as well as a number of large Chinese state-owned companies, may also join as cornerstone investors, although the final tally may change as no definitive agreements have been signed.
China Life and State Grid did not return e-mail or phone requests for comment on the PICC deal, while Scor could not be reached, IFR said. AIG's Hong Kong spokesman had no immediate comment.
Maybe now we're getting some idea why AIG is sitting on $11B in excess capital. They must really believe PICC is a bargain, with even better long term growth prospects, to sit out the last Treasury sale. But if the whole PICC offering is only $4B, AIG must have other plans as well. Sandy should cost them much less than $1B.