AIG 'could still raise $35.5bn for AIA through IPO'

10 June 2010

American International Group (AIG) may still be able to raise around $35.5 billion from its AIA unit, despite the recent collapse of a planned takeover of the division by Prudential.

According to a report by the Congressional Oversight Panel, AIG is considering holding an initial public offering (IPO) in Hong Kong for the Asian-based business.

"Treasury officials have indicated to the panel that they believe that AIG will be able to realize value equivalent to the $35.5 billion negotiated sale price through an alternate strategy, perhaps involving an IPO," it was said.

Andrew Williams, a spokesman for the Treasury, confirmed to Bloomberg that AIG's investment bankers believe that AIA would be valued at between $32 and $36 billion should an IPO take place.

Earlier this week, shareholders with Prudential criticized the company for their handling of the takeover bid, which cost the firm £450 million ($651 million) in wasted fees.

By Asim Shah

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