AIG MetLife to negotiate with ALICO

AIG renewed negotiations with MetLife, its American rival, for the sale of American Life Insurance Company, one of the jewels in its crown, in turn, that could help the victim to obtain the insurer over $ 15 billion to pay $ 80 billion, which it now owes the American taxpayers.
Call for ALICO, which has operations in over 50 countries around the world, are preliminary, once at the beginning of this year, both parties agree on the price, commented people close to the situation. When AIG received its fourth extension of the government in March, it stopped negotiations on all or part of ALICO potential candidates French Axa, Prudential of the UK and China Investment Corp, the state investment funds, and MetLife.

AIG have said they are open to suggestions for ALICO, whose largest operations are in Japan. Prudential, Axa and CIC is not interested, according to people close to the situation. In recent weeks, MetLife and AIG are negotiated again and hope that the improvement in credit markets can help both sides overcome their differences on the price, say bankers.
Before the talks to be suspended in March, MetLife was tabled offer of about $ 11 billion for ALICO, AIG and expected to receive about $ 20 billion
People close to the situation said that although AIG still want to receive more than $ 15 billion for ALICO interested in exploring the possibility of sale because you will be placed under increasing pressure from the government. The sale will enable the government bodies that own 80 percent of AIG to offset their funds faster than through the initial public offering in 2010.
MetLife may be interested in buying some parts of ALICO, although AIG prefer selling the whole business. It is unclear whether MetLife would use shares as part of payment in any tender for ALICO.
AIG and MetLife declined to comment on the negotiations.
ALICO is attractive with large geographical coverage of its activities and the opportunity to take advantage of the huge potential for growth in emerging economies.

––––––––––––––––– ––––––––––

Evronyuz

Finance