AIG ready to sell off divisions

09/8/2009 | Wall Street Journal, The

American International Group CEO Robert Benmosche is prepared to unload units rapidly, despite his warning last month that he was in no hurry, as the announcement of the sale of Asian asset-management division AIG Investments shows. Benmosche agreed to sell the unit for $300 million in cash and $200 million in various deferred payments to Hong Kong's Pacific Century Group at a price much lower than the $800 million previously offered. AIG needs cash to pay back the billions it borrowed from the government, and the pressure to raise cash might mean it must accept low offers.

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Wall Street Journal, The