According to a release by AIG, two investment banks will be chosen based on: their proposals for a listing plan, after-market support, and experience in supporting the insurer’s restructuring efforts. Even though Citigroup and Goldman Sachs are within a good chance of being selected, their failed attempt to sell a stake of up to 49% in AIA earlier this year, may act against them.
Against this backdrop, Morgan Stanley, which has been advising the US Federal Reserve on the rescue of AIG since September, 2008, has emerged as one of the two favourites to be confirmed as one of the coordinators based on its understanding of AIG’s overall restructuring process.
AIA, which operates in 15 markets in the Asia-Pacific region, has approximately $60 billion in assets and is worth $20 billion. AIG is hoping to repay the government’s $180 billion loan within three to four years from the cash it gets from the IPO.
