THE board of American International Group is set to meet today to consider the future of its AIA unit, with a public float seen as the most likely outcome, it emerged yesterday.
Banking insiders said an initial public offering for the Asian life insurance branch of AIG was more likely following the fruitless $35.5bn (£25bn) acquisition bid by Prudential last month.
However, local media reported yesterday that that four Chinese groups approached AIG and the US Treasury Department soon after Prudential withdrew its bid in June.
One potential buyer is led by Shan Weijian, chairman of investment manager Pacific Alliance, though Shan said reports of takeover talks were “unconfirmed rumours” and refused to comment further.
AIG hopes to use funds from the AIA sell-off to pay back part of its $182bn bailout by US taxpayers. The long effort to divest AIA has fostered tensions between some directors over the future of the business, and chief executive Robert Benmosche has asked the board for time to explore options for AIA besides a float.
AIG declined to comment on the IPO and the Chinese offers.