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Monday, September 29, 2008

AIG eyes sale of more than 15 businesses- report

American International Group, the insurer bailed out by the US Federal Reserve earlier this month, is looking to sell more than 15 businesses, to repay its $85 billion government loan, a newspaper report said on Sunday.

Citing people close to the situation, the newspaper said AIG was prepared to consider selling most of its operations besides its international life insurance unit and US pension businesses. The company's board was meeting in New York on Sunday night to discuss possible sales, the newspaper said.

AIG was not immediately available to comment. Assets AIG is considering selling include its aircraft leasing unit International Lease Finance Corp, its 59 per cent stake in reinsurer Transatlantic Holdings as well as its property portfolio and private equity investments, according to the article.

The paper said no final decisions had been made on what assets to sell. AIG, once the world's most valuable insurer, needs to raise cash quickly to repay the $85 billion loan that allowed it to avoid bankruptcy after taking massive losses on mortgage derivatives. If the loan is not repaid, the US government has the right to take an almost 80 per cent stake, heavily diluting investors' stock.

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