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AIG to raise up to $8b via AIA share sale: Sources

Published on Dec 18, 2012 6:10 AM
The AIA building is seen in Shanghai in this Oct 22, 2010 file photo. American International Group Inc (AIG) may raise up to US$6.5 billion (S$8 billion) through the sale of its remaining stake in Asian insurer AIA, a source said on Dec 17, 2012, marking AIG's total exit from a company it has held a stake in for nearly 100 years. -- PHOTO : REUTERS

HONG KONG (REUTERS) - American International Group Inc (AIG) said it would raise as much as US$6.5 billion (S$8 billion) from the sale of its remaining stake in AIA Group Ltd in Asia's second-largest block sale ever, exiting a business the US insurer started nearly 100 years ago.

The sale marks the end of an era for AIG in Asia and its chief executive Robert Benmosche, who took AIA public in Hong Kong in the world's third-biggest initial public offering ever two years ago.

AIG was forced to sell parts of its massive business, including AIA, after the US government bailed the company out in 2008 as it teetered on the brink of collapse. The government ultimately spent $182 billion on the rescue.

AIG priced its 13.69 per cent stake in AIA, or 1.65 billion shares, within a range of HK$29.65-HK$30.65 apiece, the company said in a release on Monday. The exact share pricing on the deal will be disclosed before the opening of the Hong Kong market on Tuesday, AIG said.

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