Notable Mergers and Acquisitions of the Day 4/7: DISK, AIG

April 7, 2009 9:39 AM EDT

• Image Entertainment, Inc. (NASDAQ: DISK) announced that representatives of Image Entertainment and Nyx Acquisitions, Inc., an affiliate of Q-Black, LLC, agreed in principle to a third amendment to the amended merger agreement. Under the latest amendment, Image will receive a $1 million payment into its operating account on April 7, 2009 from Nyx. The $1 million payment will not form part of the merger consideration, and will be immediately available to Image. Nyx will not receive any capital securities or debt obligation from Image for the $1 million payment.
  
  Under the merger agreement as previously amended, Nyx had the right to extend the merger closing date from April 6, 2009 to April 20, 2009 if Nyx deposited an additional $1.5 million into a trust account to secure payment of the business interruption fee on April 6, 2009. Under the terms of the amended merger agreement, Nyx has agreed to acquire 100% of the outstanding common stock of Image Entertainment for $2.75 per share in cash.
  
  
• 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.

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• Hellman & Friedman LLC
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