AIG will delay their selloff of their Asian division AIA Group

The Rumor has it that AIG will delay the spinoff of AIA Group, which is supposed to fetch between 32 to 34 million based upon valuations from Morgan Stanley and Goldman.  We explained in an earlier post that AIG will never fully repay the taxpayers.  It is unrealistic given their current situation. 

Now it seems as if reality is catching up with AIG and they are delaying a decision to sell off their Asian Division AIA Group.  This is only further solidifying our valuations of the AIG businesses.  I would that they would payoff the US taxpayers, but alas, investors are trying to pick this up for even cheaper after financial assets fall some more.
Via Bloomberg:

American International Group Inc. dropped a plan to sell a stake in its Asian unit to avoid delaying a pending initial public offering of the business, two people with knowledge of the matter said.

Potential buyers failed to show how they would finance the purchase of as much as 30 percent of AIA Group Ltd. before the IPO, the people said, asking not to be identified because the talks were confidential. Discussions with investors didn’t reach the due-diligence stage because of different expectations on price, one of the people said.

New York-based AIG, which is selling assets to repay a $182.3 billion bailout by the U.S., is planning a Hong Kong offering of AIA in November after Prudential Plc scrapped its purchase of the unit. A 30 percent stake would be worth $9.6 billion, based on an earlier estimate of AIA’s valuation by Goldman Sachs Group Inc., which was hired to handle the stake sale process.

Comments

Popular posts from this blog

October retail sales come in strong, especially auto sales

Tea Party Buffalo Pictures

How to spot a fake Tea Partier