AIG agrees to £23.4 billion unit sale to Prudential

[Joanne98]

Source: Reuters


NEW YORK (Reuters) - American International Group (AIG.N) agreed to sell its Asian life insurance unit to Prudential (PRU.L) for about $35.5 billion (23.4 billion pounds), in a deal that would help the U.S. government get back billions of its bailout money, sources familiar with the matter said.

The board of AIG approved the sale of American International Assurance (AIA) to Britain's largest insurer, and the sides are working on finalizing the terms and financing for the deal, the sources said on Sunday.

An announcement for what would be AIG's largest asset sale since its September 2008 bailout could come as soon as Monday, said the sources, who declined to be named because the deal is not yet public.

Prudential, whose market capitalisation is around $23 billion, will pay about $25 billion in cash and the rest in equity, two of the sources said.


Read more: http://uk.reuters.com/article/idUKTRE61R3C320100301

[scottsoperson]

1. aig gets

welfare.