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American International Group, Inc. Message Board

  • rogerabc100 rogerabc100 Oct 23, 2008 12:54 AM Flag


    GSIS eyes 49% of Philamlife
    By Iris Gonzales
    Thursday, October 23, 2008

    State pension fund Government Service Insurance System (GSIS) is interested in acquiring as much as 49 percent stake in Philamlife, which is being offered for sale by its troubled US-based parent company American International Group or AIG.

    “We are looking to be a strategic investor. We can acquire anywhere between one percent and 49 percent but we have to look at their books,” GSIS president and general manager Winston Garcia told reporters yesterday.

    The GSIS chief said acquiring AIG’s Philippine assets would complement the pension fund’s insurance business.

    AIG has yet to issue an update on its bid to sell its Philippine subsidiary.

    Garcia said that GSIS has already inquired on the “numbers” or the price of the Philippine assets of AIG, considered until recently a crown jewel in the global insurance industry.

    AIG had earlier announced its plan to dispose of some assets including Philamlife to pay $85 billion debt to the US government.

    Garcia noted that Philamlife remains a formidable player in the life insurance market and that acquiring it would strengthen GSIS.

    The GSIS chief also said that in these uncertain times, it may be viable to consider other acquisitions.

    “The best time to buy is when there is blood on the streets,” Garcia earlier said, referring to the financial meltdown in the US brought about by the credit crunch in its home mortgage market.
    “We’re looking at all opportunities,” he said.

    Earlier, Philamlife said that nearly 10 local and foreign groups including the Yuchengco family have expressed interest in acquiring the company.

    The Ayala Group, the country’s biggest conglomerate, has also signified interest in Philamlife.

    Philamlife is the country’s largest insurance company, offering healthcare insurance, pre-need plans, asset management and other services.

    AIG’s financial debacle, as well as that of Lehman Brothers and Merrill Lynch, has sent shockwaves across the globe leaving giant markets in disarray and raising the specter of a global recession.

    Philippine officials initially downplayed the crisis saying local financial institutions had little or no investment in the troubled US institutions.

    But as the crisis unraveled, officials took steps to address its possible impact on the country’s exports and on remittances from Filipino workers overseas.

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    • Yeah, but so far the offers are for the smaller divisions and they are lowballed when they do come in. There is no good news yet.

    • so all time high tomorrow ?

      • 1 Reply to strongwait

        ING and ADAG eye-up AIG’s Asian business

        by Gill Montia

        Story link: ING and ADAG eye-up AIG’s Asian business

        Dutch bank, ING, is making headlines again, this time with the news that it is taking an interest in American International Group’s (AIG) sale of its Asian businesses.

        AIG is undertaking a rapid programme of disposals following its bail-out by the US Federal Reserve with an $85 billion loan facility, in mid-September.

        Prudential has already confirmed that it is interested in AIG’s Asian operations, which could bolster its own fast-growing business in the region.

        The group is reported to be in talks with sovereign wealth funds over raising cash for acquisitions, having appointed Credit Suisse to lead negotiations.

        India’s Reliance Anil Dhirubhai Ambani Group (ADAG) is also rumoured to watching the situation closely.

        It is understood that any deal between ADAG and AIG would exclude AIG’s Indian life insurance joint venture with the Tata group, but could still make ADAG the largest life insurer in Southeast Asia.

        ING has had a busy week so far, having announced the sale of its Taiwanese life insurance business to Fubon Financial Holdings and details of a €10 billion injection of cash from the Dutch Government, in the past 48 hours.

    • <<The Ayala Group, the country’s biggest conglomerate, has also signified interest in Philamlife. >>

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