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Another AIG Unit on Sale Block

Source: Associated Press

Posted on 14 Aug 2009

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American International Group, Inc. announced the sale of yet another of its business units.

The insurance giant will sell its AIG Systems Solutions Pvt. Ltd., an India-based company that provides information technology services to AIG companies around the world, to MphasiS, of Chennai, India.

MphasiS, a unit of Hewlett Packard's Electronic Data Systems, said about 39 percent of its revenue comes from financial services and insurance companies.

Terms of the deal were not disclosed. AIG Systems Solutions is based in Chennai and Kolkata and has about 800 employees.

The agreement was announced on the heels of AIG’s announcement of the sale of its Hong Kong finance business to a Chinese bank for $70 million in cash and $557 million in debt, and shortly after its financial products unit completed the sale of its energy and infrastructure investment assets.

AIG has been selling off parts of the company in an effort to raise money to pay back a U.S. government loan package worth up to $182.5 billion. The government now owns roughly 80 percent of the huge insurer.