Shares fall as analysts wonder how much of AIG will be left
AIG is talking to banks about floating its US life insurance business, American Life Insurance Co (Alico) for as much as $5bn on the New York, stock exchange, Reuters reports
About 10 banks, including UBS, Deutsche Bank, Citigroup, Credit Suisse and Goldman Sachs, are expected to be interviewed for the job.
The Federal Reserve has already given Morgan Stanley the lead role any IPO of AIG units, Reuters said.
Bloomberg added that AIG shares fell $4.20, or 10%, to $35.85 after Credit Suisse Group AG cut it to “underperform” because there may be little left for shareholders following asset sales.
“Near term monetisation of value of businesses suggests little to no value for common equity,” Thomas Gallagher, an analyst at Credit Suisse, said today in a note. “The risk of further erosion of franchise value” may force the company to sell units before markets recover, he said.