The sale of AIG’s fund-management arm to Pacific Century Group may be in danger of falling apart, according to a person inside the company.
The sale of the unit, which was renamed PineBridge Investments, has been twice delayed. The deal was originally scheduled to close in December. It was pushed to January 31st and then February 28th. Now inside of the company there are doubts that the deal will close this month or at all.
The delays in the $500 million sale were said to be caused by the need to wait for regulatory or customer approvals. But even as late as January 31st PineBridge spokesman Ryan O’Keefe was saying those approvals would only take five to 10 days and the deal would close at month’s end.
Although it is still possible the deal could close on schedule, doubts are growing inside of PineBridge.
“This thing might not happen at all,” a person at PineBridge said recently.
It’s not clear what would drive further delays. Perhaps the talk of more delays is simply idle chatter coming from dispirited employees, many of whom stand to receive bonuses when the sale closes. This is still really nothing more than internal rumours and speculation, as far as we can tell.
AIG is selling businesses to repay its $182.3 billion government bailout. Hong Kong billionaire Richard Li’s Pacific Century agreed to purchase the unit, which was previously known as AIG Global Investment Corp. AIG is PineBridge’s biggest customer, accounting for 33 per cent of its assets under management.