AIG AIA will decide by next week
Posted by admin | Under calculation, corporations, management, office, tidings Wednesday Aug 25, 2010American International Group (AIG) is expected to decide by early next week if he enters into formal negotiations with strategic investors for AIA, its Asian subsidiary life insurance, it was learned Wednesday from sources near process.
The establishment of a deadline for submission of bids by U.S. insurer AIG could finally shows consider introducing its Asian subsidiary of the Stock Exchange of Hong Kong in the fourth quarter of the year, but that an outside investor is entering the capital AIA ago.
Some Chinese investors have nevertheless expressed their interest in acquiring a stake in AIA before its IPO, which would allow it to recover about U.S. $ 15 billion (12 billion euros).
Given the short time remaining, it is unlikely that a significant agreement is reached before the start of the procedure prior to an IPO.
"The train ahead of the IPO rather quickly.This means that the possibility to stop it is limited to a strategic investor wishing to report to the Board, examine accounts and negotiate the price, "said one source familiar with the matter.
SEVERAL CHINESE GROUPS INTERESTED
AIG was not immediately available for comment.
Three to four consortia consisting of Chinese investors have approached AIG offering to take stakes in AIA before its IPO, said one source.
Some consortia have expressed interest to take between 10% and 30% stake in AIA, said the sources interviewed.
These have however said AIG is focused solely on an IPO while strategic investors do not constitute a decisive element of the process.
The press had previously cited the names of China Life Insurance, Ping An, Cinda Asset Management Fosun Group, Hony Capital and Alibaba.com among potential suitors for a strategic stake in AIA.
AIG should be mandated Citigroup, Deutsche Bank, Goldman Sachs and Morgan Stanley as international coordinators of the IPO of its subsidiary, had previously been learned from several sources.
Generally the interests sold before the IPO are priced downgraded which is then used to refer to that of the IPO.
Such a transaction could facilitate the sale of the remaining capital from traditional institutions and funds.
If the proposed IPO of AIA is realized, it could be the largest ever conducted on the Stock Exchange of Hong Kong and would allow AIG to repay a portion of public funds injected into the U.S. insurer in 2008.