It’s funny that anyone still talks about AIG (AIG) paying back the taxpayer. The insurer has taken in far more money than its peak market cap, so the idea that the sum of its parts will ever be worth a sliver of what we’ve pumped in is absurd.
Still, they’re still trying to salvage some parts for scraps. And yes, it does look like a firesale.
The Journal reports that bids for the company’s asset management unit, which manages about $100 billion, have come in around $400-$800 million. That’s far lower than typical valuations for these type of businesses. Normally with that much money in house, it might get bids for $1-$2 billion.
But alas, it’s AIG and nobody knows how healthy the business really is, and whether customers are fleeing in droves. But hey, Ed Liddy, don’t worry about selling “under market” or whatever. We’ll take the $800 million please. That’s like $2.50 for everyone in America.