AIG may abandon asset sales plan: report

Reuters

Posted at Feb 25 2009 02:57 PM | Updated as of Feb 25 2009 10:58 PM

American International Group Inc may scrap a plan to repay a $60 billion US government loan by selling businesses, after failing to find enough promising bidders, Bloomberg said, citing people with knowledge of the matter.

AIG Chief Executive Edward Liddy, who took charge in September and unveiled the strategy the following month, has concluded it will not work, the people told the news agency on condition of anonymity.

AIG is proposing additional ways to reduce the company's debt to the US government, including handing over stakes in some operations directly to the government, a person told the news agency.

AIG could not be immediately reached for comment by Reuters.

AIG's Philippine unit, the Philippine American Life and General Insurance Co. (Philamlife), has been one of the assets on the auction bloc. Philamlife and its subsidiaries have attracted bids from the following groups: Banco de Oro Unibank – Assicurazioni Generali SpA; Ayala Group of Companies and Prudential Life of the UK, and; Manulife Financial of Canada.