AIG Asia share offering may raise lead banks a cool $350m

MORGAN Stanley and Deutsche Bank are expected to net as much as $350m (&pound;214m), after being named as global co-ordinators of the stock market flotation of AIG&rsquo;s Asian life insurance arm.<br /><br />The US and German investment banks are running the giant initial public offering of American International Assurance (AIA), which is being sold off as bailed-out US insurer AIG scrambles to raise capital.<br /><br />The banks will earn between $125m and $175m, based on the usual 2.5 per cent to 3.5 per cent fee range if the group raises $5bn for the offering, according to Thomson Reuters and Freeman. <br /><br />If the offering hits top-end estimates of $10bn, the fee could be much higher. <br /><br />Over thirty investment banks pitched for a role in the share offering, and eleven are thought to have been interviewed by AIG to select the final two. <br />Morgan Stanley was nominated as a banker to the placing by the US Federal Reserve, as the firm has been advising the US government on the AIG capital-raising saga.<br /><br />AIG is raising cash to pay off a government bailout worth $180bn.