AIG Deconstructed: Why AIG Owns U.S. Ports

NEW YORK (TheStreet) -- Could the sinking -- or at least seriously listing -- ship that is American International Group(AIG Quote) take six major U.S. ports down with it?

AIG Global Investment Group, an arm of the insurer, acquired P&O Ports North America in March 2007 from Dubai Ports World. Along with the purchase it gained ownership of six major ports including those in New York/New Jersey, Philadelphia, Baltimore, Miami, Tampa and New Orleans. And New Orleans, it is worth noting, is one of the world's busiest ports.

As the newest revelation in our ongoing series deconstructing the tangle of AIG, the ownership of the ports is yet another reason why the dismantling of the flailing insurer is so potentially problematic for the U.S. economy.

As part of the deal, AIG also purchased stevedoring operations in 16 locations along the East and Gulf Coasts, along with a passenger terminal in New York City. At the time, the deal was valued at $700 million, but the terms were not disclosed.

(Those less than impressed by AIG's management can take heart: the company is only involved at an investor level and has no say over port security.)

"AIG Global Investment Group has been a leader in acquiring strategic, regulated infrastructure businesses and assets. We have identified the marine terminals sector as a key element in our infrastructure investment strategy, and we believe that POPNA is one of the leading operators in this sector in the United States," Christopher Lee, AIG Global Investment Group managing director, said in a statement at the time of the deal.

But now that AIG is shedding assets to repay its $85 billion loan from the government, the fate of P&O Ports remains unclear.

A spokesperson at AIG said there has been no news surrounding P&O for several years and would not comment on the future of the business.