Source: AIG Will Not Sell Stake in Asian Insurance Business (AIG)

American International Group

has rejected plans to sell a strategic stake in its Asian life insurance business ahead of its IPO, a source familiar with the matter said Friday. About four consortiums consisting of Chinese investors had approached AIG with offers to buy a stake in American International Assurance (AIA), sources had previously told Reuters. According to a Reuters report, "AIA's IPO is expected to raise about $15 billion through a Hong Kong listing by late October or early November, in what could be the biggest IPO on the Hong Kong stock exchange. The tight schedule for the IPO left little room for strategic investors to conduct due diligence leading to the process being scrapped, the source said." AIG declined to comment. The Reuters report notes that "AIG, which is nearly 80 percent-owned by the U.S. government, is divesting AIA and other assets to repay taxpayers after receiving a $182.3 billion aid package at the height of the financial crisis." Shares of AIG are higher by 2.8% this afternoon, to $34.94. Is AIG a Buy, Sell or Hold? Click