AIG sells unit to Bridge for fee of $500m

BAILED-OUT US insurer American International Group (AIG) has struck a deal to sell its investment advisory and asset management operations for around $500m (&pound;305m), the company said at the weekend.<br /><br />Bridge Partners, which is owned by private equity house Pacific Century Group, is to buy AIG Investments for an initial $300m, but the price could rise to $500m based on future payments linked to performance.<br /><br />Alain Karaoglan, AIG&rsquo;s senior vice president of divestiture, said the sale &ldquo;provides fair value for AIG&rdquo;, although new chief executive Robert Benmosche is believed to have been seeking a deal worth up to $800m.<br /><br />Benmosche has previously said that AIG will not be rushed into selling off assets at fire sale prices as the company bids to repay some of the $180bn in state handouts and guarantees it has received during the financial crisis.