AIG Gives US $25B Stake In Two Spun-Off Entities

Law360, New York (June 25, 2009, 12:00 AM EDT) -- Former insurance giant American International Group Inc. announced Thursday that it would give the Federal Reserve Bank of New York a $25 billion stake in spun-off entities created from two foreign life insurance groups, American International Assurance Co. Ltd. and American Life Insurance Co.

AIG will place its equity in both AIA and ALICO in special-purpose vehicles, the company announced, which will be positioned for future initial public offerings, depending on market conditions. AIG would retain 100 percent of the common interests in the SPVs, with...
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