AIG Unloads Wealth Management Business
American International Group (AIG - Get Report) just announced a deal to sell its wealth management arm AIG Private Bank Ltd. to Aabar Investments PJSC of Abu Dhabi. Terms of the deal were not disclosed.
The AIG Private Bank will conduct business under a new name, and its headquarters will be in Switzerland. AIG says that the bank's senior management is expected to remain with the bank. The sale comes as part of the company's promise to sell off a number of business units to pay off a $85 billion government loan.
It appears the company will attempt to get back to its focus on U.S. property and casualty and foreign general insurance businesses. We'll track the progress of the sales, but it will be interesting to see if the assets get sold at prices that can keep the company afloat. We would look elsewhere for better investment opportunities.American International Group is not recommended at this time, holding a Dividend.com Rating of 1.5 out of 5 stars.
Dow Chemical Completes Kuwait Deal; Rohm & Haas Deal Next Dow Chemical (DOW - Get Report) just announced it has finalized a joint venture agreement to form K-Dow Petrochemicals, which will market plastics and other related products. The combination of Dow and Petrochemical Industries Co., a subsidiary of Kuwat Petroleum, is expected to generate annual sales of about $15 billion. The closing of this deal comes right Dow Chemical's $15.3 billion buyout of Rohm & Haas (ROH), which it hopes will help it grow into the high-margin specialty chemicals market.