While American International Group Inc.'s new CEO preaches patience on selling big-ticket assets, the hobbled insurer is still leaving open the option of quick spinoffs and is shedding smaller units like the asset-management division it agreed to sell to prominent Hong Kong businessman Richard Li.
Soon after taking AIG's top job last month, Robert Benmosche said he might wait as long as three years to offer investors a stake in two multibillion-dollar life-insurance units if he could get a better price. But the work to get them ready for initial public offerings of stock starting early next year is nonetheless continuing, which gives AIG the flexibility to act when Mr. Benmosche sees fit, people familiar with the matter say. So AIG could move quickly if, for instance, he thinks market conditions might deteriorate.
AIG is selling off businesses to help repay tens of billions of dollars that it owes the government due to a federal bailout last September. The company declined to comment.
AIG said Saturday it had agreed to sell a major asset-management unit to Mr. Li's private investment vehicle, Pacific Century Group. Mr. Li will pay an initial $300 million in cash on closing for AIG Investments, and an additional $200 million in carried interest and other payments linked to future performance of the business.
The price tag is well below the roughly $800 million some potential bidders had discussed paying for the asset-management unit several months ago. The range in values shows one risk confronting Mr. Benmosche -- that AIG's battered image will make its businesses worth less over time.
The assets under management at AIG Investments fell in some categories after the bailout, cutting into its value, and the performance-based conditions tied to the deal suggest concern about further problems. AIG Investments manages $89 billion for clients in 32 countries. Its assets include private-equity funds, "hedge funds-of-funds," stocks and fixed income.
The purchase is a bold venture for Mr. Li after recent high-profile setbacks. Mr. Li is chairman of Hong Kong's biggest telecommunications firm, PCCW Ltd., and the younger son of Li Ka-shing, one of the wealthiest men in Asia.
Soon after taking AIG's top job last month, Robert Benmosche said he might wait as long as three years to offer investors a stake in two multibillion-dollar life-insurance units if he could get a better price. But the work to get them ready for initial public offerings of stock starting early next year is nonetheless continuing, which gives AIG the flexibility to act when Mr. Benmosche sees fit, people familiar with the matter say. So AIG could move quickly if, for instance, he thinks market conditions might deteriorate.
AIG is selling off businesses to help repay tens of billions of dollars that it owes the government due to a federal bailout last September. The company declined to comment.
AIG said Saturday it had agreed to sell a major asset-management unit to Mr. Li's private investment vehicle, Pacific Century Group. Mr. Li will pay an initial $300 million in cash on closing for AIG Investments, and an additional $200 million in carried interest and other payments linked to future performance of the business.
The price tag is well below the roughly $800 million some potential bidders had discussed paying for the asset-management unit several months ago. The range in values shows one risk confronting Mr. Benmosche -- that AIG's battered image will make its businesses worth less over time.
The assets under management at AIG Investments fell in some categories after the bailout, cutting into its value, and the performance-based conditions tied to the deal suggest concern about further problems. AIG Investments manages $89 billion for clients in 32 countries. Its assets include private-equity funds, "hedge funds-of-funds," stocks and fixed income.
The purchase is a bold venture for Mr. Li after recent high-profile setbacks. Mr. Li is chairman of Hong Kong's biggest telecommunications firm, PCCW Ltd., and the younger son of Li Ka-shing, one of the wealthiest men in Asia.
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