AIG mulls sale of 15 businesses to repay $85 bn govt loan

In a bid to secure its future as an independent company, the beleaguered insurance major American International Group(AIG) is contemplating sale of its 15 businesses in order to repay the $85 billion government loan, media report says.     

"AIG, is considering selling more than 15 businesses, including its aircraft leasing unit, a stake in a large US reinsurer and billions of dollars in properties in an effort to repay $85 billion government loan and secure its future as an independent company," the Financial Times reported.     

The board of AIG met in New York yesterday to discuss the radical plan for asset disposals aimed at helping the company emerge from its crisis.     

AIG, was de facto nationalised this month when the US administration stepped in with an emergency loan after AIG collapsed under credit related losses. The extended government loan would give Washington the right to buy majority stake in the company.     

With the US Federal Reserve's rescue loan of up to $85 billion to save AIG from bankruptcy, the US government will get an equity stake of 79.9 per cent of the insurance titan under the agreement.     

Quoting people close to the situation the daily said, AIG, led by its new chief executive Edward Liddy, wanted crucial businesses such as its international life insurance unit and its US pension businesses to be at the core of the "new AIG".