Prudential Re-Ups Talks For AIG Japan Units

Prudential Financial(PRU Quote) has resumed talks with American International Group(AIG Quote) about buying two Japanese insurance units after talks stalled earlier this year, Bloomberg reports, citing two people briefed on the situation.

A sale of AIG's Star Life and Edison Life operations may yield more than $3 billion, said one of the people, Bloomberg reports. A rival bid for the units from Manulife Financial is no longer under active discussion.

Prudential and AIG aren't close to reaching an agreement on a transaction, and the talks could fall apart, one of the people said, the news agency reports. Spokespeople for all the parties involved declined to comment.

A sale of the Japanese businesses could represent the biggest transaction since AIG was rescued from collapse by the U.S. government in September, Bloomberg notes. The insurer, which has received about $180 billion from the U.S. government, is trying to sell assets to pay back the government loans.

AIG said Wednesday it planned to speed up the pace of its planned spinoff of its American Life Insurance Co. subsidiary through an initial public offering.