AIG may face break-up

Restructuring talks are underway at stricken US insurance giant AIG which could see the company broken into three government-controlled units... The plan would split AIG into its Asian operations, its international life insurance business and its US personal lines business reported the Financial Times. There could also be a fourth unit comprised of the company's toxic assets.

Trouble with selling large assets may have prompted the plan. AIG's coveted Asian life insurance business AIA is currently on the block with three bidders in the running. The asset is expected to be valued at around US$20bn but is yet to receive a formal bid in an auction which is now in its last week...

The plan is being finalised and is expected to be announced next Monday when the company will also likely report a loss of US$60bn.

Thomson Merger News: AIG may face break-up