Metlife to acquire AIG insurance unit
US insurer MetLife is to acquire American International Group’s (AIG) insurance business in a deal worth $15 million, news reports have claimed.
MetLife, which is the largest insurance company in the US, is expected to offer AIG $8 million in stock and the rest in cash for the purchase of Alico.
Up to $5 billion of the funds is thought to be coming from a bridge loan from banks including Bank of America, JPMorgan, Credit Suisse Group and Deutsche Bank.
Robert Haines, an analyst at CreditSights Inc, told Bloomberg: “It shows AIG needs to get a deal done, and they’d be willing to accept MetLife stock even though they’d probably prefer all cash.
“What AIG can’t have is a complete blow-up of this deal; that would be viewed extremely negatively by the market and public.”
Spokespersons from both companies refused to comment on the transaction although the news provider suggested that a deal between the two companies could be struck imminently.
MetLife recently confirmed it was in talks with AIG over the potential acquisition.
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Tags: Insurance