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