Posted on 27 Aug 2010
In other AIG news, an abrupt reversal just days ahead of its initial public offering, sources close to the deal say American International Group, Inc. has nixed plans to sell a strategic stake in American International Assurance (AIA), the insurer's Asian life insurance business.
As recently as Wednesday, AIG had been on track to set early next week as a deadline for bids for a stake in AIA ahead of the planned AIA listing on the Hong Kong stock exchange.
AIG had been approached by a number of Chinese investment groups offering to purchase shares of AIA, said the source. However, The tight schedule for the IPO listing didn't allow investors enough time to conduct due diligence, contributing to the death of the deal, said the source.
AIA's IPO is potentially the largest IPO on the Hong Kong stock exchange, and is expected to bring in as much as $15 billion within the next three months.
Investors from Asia and the Middle East are now said to be interested in purchasing cornerstone stakes in AIA.