US government to swap 80% holding for stakes in three units

AIG and the US authorities are in talks to split the stricken giant in three, the FT reports.

Under the plan the government would swap its 80% holding for large stakes in three units - AIG's Asia's operations, its international life assurance business and the US personal lines business.

A fourth unit consisting of AIG's troubled assets could also be formed. People close to the situation said AIG could announce the overhaul on Monday.