AIG Will Sell Alico Unit to MetLife
American International cartier Jewelry Group Inc. and MetLife Inc. were putting finishing touches Sunday on a widely anticipated, $15.5 billion deal for AIG's second-largest foreign life-insurance business, peoplecartier ring familiar with the m cartier rings atter said. The complicated deal would leave U.S. government-ccartier braceletontrolled AIG owning roughly a fifth of MetLife, thnation's rings jewelry No. 1 seller of life insurance.AIG is planning to announce Monday morning that it has agreed to sell American Life Insurjewelry necklacesance Co., better known as Alico, for $6.8 billion in cash and $8.7 billion in MetLife stock and convertible preferred securities, according to peTiffany ople familiar with the matter. Under the deal, a special-purpose vehicle within AIG will get a stake of aboutiffany rings t 20% in MetLife, the people stiffany bracelets aid. That makes AIG, which is nearly 80% owned by the U.S. government, the second-largest shareholder of Mettiffany necklaces Life, which made it through the financial crisis silver necklacelargely unscathed. A trust currently holds roughly 28% of MetLife's shares onsilver bracelet behalf of its insurance policy holders.
AIG's shares in MetLife will come with voting jewelry necklacesrestrictions, preventing it from influtiffany rings encing MetLife's operations andTiffany business decisions. But AIG will be exposed to MetLife's fortunes over at least the next nine months to two-and-a-half years, the minimum period for which it has to hold on to the shares. H tiffany braceletsow MetLife's stock performs will detiffany necklaces termine the value AIG can fetch when it decides to sell off its stake for cash. MetLife didn't receive government silver necklace jewelry necklacesmoney during the fisilver braceletnancial crisis, and it competes head to head with AIG's U.S. life-insurance and retirement-services business inreplica watches several areasreplica watches, such as fixed and variable annuities and life-insurance policies that are sold to individuals. MetLife will likely haverolex to raise billions from investors to finance the cash portion of its Alico purchase. AIG Chief Executive
Robert Benmosche, who was previously ML'Oreal etLife's CEO and remains a shareholder, wasn't involved in the deal talks, which were handled by a special committee within AIG.With the Alico pact, and one inked a week ago to sell its Asian life-insurer unit, seo American International Assurance Ltd., to Prudentiadiamondsl PLC for $35.5 billion, AIG now expects to return $32 billion in cash to the Federal Reserve Bank of New York in tugg bootshe coming months, if both deals close as scheduled in the third quarter of 2010. Another $18 billion is likely to be returned over the next two years sunglasses when AIG's large stakes in Prudential and MetLife are sold.
