Distressed insurance conglomerate, American International Group, will present plans to list its Asian life insurance unit on the Hong Kong stock exchange later this month. AIG is hoping the decision will help the company raise billions of dollars for 2010.The decision is meant to help fundraise the billions of dollars the company needs to help repay its debts to the government.
At present, taxpayers have an 80 percent stake in the company. AIG is hoping that number will change with the Hong Kong listing which analysts predict could raise as much as $20 billion.
A.I.A. is among the few successful segments of the company’s portfolio with over 20 million policyholders spanning across Asia. A.I.G. has been relying A.I.A. to cure it from myriad ills developed in the 2008 crash. First, the company attempted to auction off its assets earlier this year, before deciding on a public stock offering and just this week A.I.G. used the unit as leverage in a situation with NY Federal Reserve. The Reserve was given a stake in the unit in exchange for the pardon of a $16 billion debt that could have damaged the firm’s credit.
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