AIG mulls sale of 15 businesses to repay USD 85 bn govt loan

London, Sep 29 (PTI) In a bid to secure its future as an
independent company, the beleaguered insurance major American
International Group is contemplating sale of its 15 businesses
in order to repay the USD 85 billion government loan, media
report says.

"A.I.G., is considering selling more than 15 businesses,
including its aircraft leasing unit, a stake in a large U.S.
reinsurer and billions of dollars in properties in an effort
to repay USD 85 billion government loan and secure its future
as an independent company," the Financial Times reported.

The board of AIG met in New York Sunday to discuss the
radical plan for asset disposals aimed at helping the company
emerge from its crisis.

A.I.G., was de facto nationalised this month when the
U.S. administration stepped in with an emergency loan after
A.I.G. collapsed under credit related losses. The extended
government loan would give Washington the right to buy
majority stake in the company.

With the U.S. Federal Reserve's rescue loan of up to USD
85 billion to save A.I.G. from bankruptcy, the U.S. government
will get an equity stake of 79.9 percent of the insurance
titan under the agreement.

Quoting people close to the situation the daily said,
A.I.G., led by its new chief executive Edward Liddy, wanted
crucial businesses such as its international life insurance
unit and its U.S. pension businesses to be at the core of the
"new AIG".

"But apart from those, A.I.G. was prepared to consider
selling most other operations. The company and its advisers,
led by Blackstone and JPMorgan Chase, are believed to have
drawn up a list of about 15-20 large businesses that could be
sold," F.T. added.

Among the units that are most likely to be sold are
International Lease Finance Corp, one of the world's largest
aircraft leasing businesses, which is expected to fetch about
USD 10 billion. A.I.G. is believed to have received
expressions of interest from Asian and Middle Eastern buyers,
F.T. said.

A.I.G.'s 59 percent stake in Transatlantic Holdings, a
listed reinsurer, is also believed to be on the block, as are
its huge property portfolio and private equity investments
including one in Londons City Airport.

Bermudian reinsurers are expected to be interested in
A.I.G.'s stake in Transatlantic, F.T. said quoting analysts
and insurers.

However, A.I.G., Blackstone and JPMorgan, were all
unavailable for comments, F.T. reported. PTI DRR