AIG Taps Morgan, Deutsche Bank for Asia IPO

American International Group(AIG Quote) has assigned Morgan Stanley(MS Quote) and Deutsche Bank (DB Quote) as global coordinators for the upcoming initial public offering of AIG's Asian life insurance unit, a report says.

The spinoff of American International Assurance, through a public listing on an Asian stock exchange, is part of AIG's efforts to repay a government bailout of more than $180 billion, the Journal notes.

More than 30 investment banks applied for roles in the IPO, said a person familiar with the situation, the Journal reports. The IPO could raise between $5 billion and $10 billion in the first quarter next year, the Journal says.

Morgan Stanley was nominated by the Federal Reserve as a global coordinator because of its role advising the Fed on all matters related to AIG. Deutsche Bank was seen as a dark-horse candidate before interviews were held earlier this month, according to the newspaper.

American International Assurance has business in 13 markets in the Asia Pacific region. As of Nov. 30, 2008, it had more than $60 billion in assets and more than 20 million customers, according to the Journal.