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Group of Chinese Companies Preps to Bid for Big Stake in AIG Life Unit

Source: Reactions

Posted on 17 Aug 2010

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AIA, an Asian life insurance subsidiary of American International Group, Inc., may soon face a bid from a group of Chinese companies for a 30% stake in the unit.

The would-be bidders include Industrial and Commercial Bank of China and China Life Insurance in an investment amounting to approximately $10 billion, or roughly one third of the estimated $30 billion that AIA is worth. Anything less, and the consortium of Chinese companies would abandon the deal, said one news report.

AIG is attempting to find Chinese investors in advance of its planned initial public offering of AIA on the Hong Kong stock exchange later this year. Earlier in the year, Prudential made a failed bid of $35.5 billion for the life insurer.