Prudential Financial Inc. of Newark, N.J., is back in talks with American International Group Inc. to purchase a pair of the beleaguered carrier's Japanese units, according to published reports.
Prudential Financial Inc. of Newark, N.J., is back in talks with American International Group Inc. to purchase a pair of the beleaguered carrier's Japanese units, according to published reports.
The Tokyo-based units, AIG Star Life Insurance Co. Ltd. and AIG Edison Life Insurance Co., would reap more than $3 billion if they were sold, an insider told Bloomberg.
Talks of a sale of the two companies had been on and off since last fall, when New York-based AIG signaled its intent to focus on its property-casualty business as it sought to sell off other businesses.
Manulife Financial Corp. of Toronto, one of the rival bidders for the two units, is now out of the running, the insider told Bloomberg.
However, AIG and Prudential aren't near a sales agreement yet, and the sales talks could fall apart again, according to the report, published yesterday.
Prudential passed on federal aid through the Troubled Asset Relief Program. Instead, the company raised $2.4 billion through a stock and debt securities offering.
This week, AIG also said that it would expedite its efforts to put American Life Insurance Co. on the public market, resulting in a separate board of directors and management team for the Wilmington, Del.-based subsidiary.
Neither Manulife or Prudential has a comment on the report.
AIG did not return a call asking for comment.
