AIG (AIG) Unit Draws Bidders, But Offers Are Low

According to reports from the Wall Street Journal, a half-dozen or so bidders have emerged for AIG's (NYSE: AIG) asset-management business, but the sale could become complicated by client withdrawals and declines in asset prices.

The AIG unit handles outside asset management for pension funds, insurance companies and wealthy individuals. Its investment portfolio includes private-equity stakes, hedge-fund interests and stocks and bonds.

Buyers have submitted offers between $400-$800 million, which is lower than the typical price for asset-management businesses which can range from 1% to 2% of assets. Based on this historic range, the AIG unit could have sold for between $1-$2 billion.

Private-equity firms Ashmore Investment Management Ltd., Hellman & Friedman LLC, Rhone Group LLC and TA Associates Inc. are among groups that have shown interest. Mutual-fund manager Franklin Templeton Investments and asset manager Southgate Alternative Investments have also shown interest.

The low bids for the unit are due to concerns about the valuations of private-equity and hedge-fund stakes and worries that AIG personnel and clients are defecting.

Link to WSJ Article

You May Also Be Interested In

• Paramount Global (PARA) and Skydance are closer to a merger - CNBC
• Cleveland Cliffs CEO Lourenco Goncalves on US Steel-Nippon Deal: The Deal Will Fail - CNBC Interview
• ByteDance Prefers TikTok Shutdown in US if Legal Options Fail - Reuters