Has AIG blown through another deadline for the sale of its asset management unit?Earlier this month we reported that the sale of the unit, which was renamed Pinebridge last month as AIG prepared to sell it off, was rumoured to be in trouble.
The sale was originally scheduled to close in December but was pushed to the end of January. AIG cited the need for customer and regulatory approvals before the sale could close. When January came and went without a hard close on the sale, AIG said the final sale was just days away but would likely officially close at the end of February for “accounting reasons.”
We’re told that our earlier report annoyed some inside of AIG, who still believe the transaction could close over the weekend. What they seemed to have missed was that it is surprising the deal is still being negotiated at any level, given that it was supposedly just days away from being finalised at the end of January.
Inside of AIG, some say, off the record, that the deal is “still on track.” Others are surprised that AIG did not announce the closing of the $500 million sale with the earnings announcement today. Nobody is willing to comment on the record about the sale.
“If there’s not a problem, why not announce the deal today? It’s the last business day of the month,” a person familiar with the matter said.
“I cannot figure out what they are still negotiating that would take them into the weekend,” an AIG insider said.
The sale of Pinebridge took on increased importance today when AIG announced that it was scrapping its old plans to repay government loans with securitized revenues from its insurance business. Now AIG says it will repay with asset sales. The difficulties with the Pinebridge sale and the delays in the much more significant sale of its foreign life insurance business to MetLife for $15 billion cast at least some doubt on the new plan.